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      Question

      Which of the following expenditure should NOT be

      recognized as intangible asset as per AS 26?
      A Cost of software purchased for internal use Correct Answer Incorrect Answer
      B Development cost meeting recognition criteria Correct Answer Incorrect Answer
      C Research expenditure Correct Answer Incorrect Answer
      D Technical know-how purchased Correct Answer Incorrect Answer
      E Goodwill acquired in business combination Correct Answer Incorrect Answer

      Solution

      Research costs must be expensed as incurred; development costs can be capitalized if recognition criteria met.

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