Question

A pharma company spends ₹50 crore on early-stage drug molecule research (feasibility not established). Later spends ₹30 crore proving commercial viability and securing regulatory approval. How should costs be treated?

A Capitalise entire ₹80 crore as intangible asset.
B Expense ₹50 crore; capitalise ₹30 crore as development intangible.
C Capitalise ₹50 crore; expense ₹30 crore.
D Expense all as R&D.
E Defer as pre-operative expenditure.
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