Expenditure on research and development is written over their estimated usefull lives of 3 years.
Development costs are only capitalised when the related products meet the recognition criteria of an internally
generated intangible asset, the key criterion as follows:
-technical feasibity of the completed intangible asset;
-the probability of future economic benefits;
-the reliable measurement of cost; and
-the ability and intention of the company to use or sell the intangible asset.
Expenses for research and development include associated wages and salaries, material costs, depreciation and
directly attributable overheads. The identifiable expenditure is then amortised over the period during which the
benefit is expected to occur. Provision is made for any impairment.