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51.8. Research and development expenses

Research and development expenses are recognized in profit or loss in the period when they are incurred.

Like other intangible assets, research and development expenses meeting the capitalization criteria presented below are measured at acquisition price or manufacturing cost less accumulated amortization and accumulated impairment losses. Amortization is calculated based on the straight-line method, taking into account the estimated useful life, which is 2-7 years.

Capitalization criteria:

  • the technical feasibility of completing the intangible asset so that it will be available for use or sale;
  • the intention to complete the intangible asset and use or sell it;
  • ability to use or sell the intangible asset;
  • the way the intangible asset will generate probable future economic benefits. Among other things, the enterprise should demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset;
  • the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset;
  • the ability to reliably measure the expenditure attributable to the intangible asset during its development.