As-26 describer the Accounting treatment of R&D expenses as expenses incurred on research phase should be expenses as when incurred and expenses incurred on development phase should be capitalized by satisfying given conditions,and if it is not possible to classify the same then all expenditure incurred should be treated as on RESEARCH phase and charged to P&L a/c,
Then Any capital expenditure incurred for example, Plant and machinery purchased for R&D can be write off to P&L accounts.
Going by AS - 26 you have to charge that capital exp to P&L.
But do apply ur logic also, in case of research the major expenditure is most of the time on Manpower. Other Capital assets must be taken on lease/Rent so only periodic charge will go.
This is general view if you have any specific example do tell me.
22 October 2011
AS-26 treatment of R&D expenditure
If any specific expenditur for purchasing Plant and Machnery which satify the criteria for Fixed Assets as per AS-10 then also it can be charged to P&l A/c.
CAclubindia
