Expenses Incurred during trial run

Lol... It's accounting procedures, nobody need to product. Better to try, to get it...

LOL...

Mmm im confused but fine. You only answered one part pf it- new product.

Research happens subsequently.  Its an expense. Eg. Company might do research looking for a substitute product aka cost cutting. 

If it is to enhance final product performance, when you can reliably measure, its capitalised.  How can you reliably measure  research outcome? 

I meant to say how can anyone be sure of economic benefit inflow?

Please read my 2nd & 3rd replies...

Your absplurely correct to think of it as development  cost and capitalise it. Lets assume fmcg product soap is developed. This expensidure is capitalised. But your saying current assets. I couldnt find a better interpretation than this - The useful life of an intangible asset may be very long but it is always
finite. Uncertainty justifies estimating the useful life of an intangible asset
on a prudent basis, but it does not justify choosing a life that is 
unrealistically short.  

Max ten years once the asset is put to use that is making sales. Amortadation is annual correct? 

@ Raja PM why are you lol in front of estimated life. Whilst your a ca an me being the biggest interpreter im Msc? Just behave properly here

R&D is a beggar nomenclature in a professional world! The tax is the compliance and all reporters suffer due to the influx. In reporting its straight forward because no interpretation says change back or or act along tax layman. 

I got bruised in an accident and thats why i probably am not typing correct. It can happen to anyone under medication

R&D is an irrelavant word. Only mba and b.com use that word