56. In some cases, expenditure is incurred to provide future economic benefits to an enterprise, but no intangible asset or other asset is acquired or created that can be recognised. In these cases, the expenditure is 9 Accounting Standard (AS) 28, ‘Impairment of Assets’, specifies the requirements relating to impairment of assets. Intangible Assets 521 recognised as an expense when it is incurred. For example, expenditure on research is always recognised as an expense when it is incurred (see paragraph 41). Examples of other expenditure that is recognised as an expense when it is incurred include: (a) expenditure on start-up activities (start-up costs), unless this expenditure is included in the cost of an item of fixed asset under AS 10. Start-up costs may consist of preliminary expenses incurred in establishing a legal entity such aslegal and secretarial costs, expenditure to open a new facility or business(pre-opening costs) or expenditures for commencing new operations or launching new products or processes (pre-operating costs);
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