SSAP 13 Accounting for Research and Development

SSAP 13 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:

• icaew.com/newukgaap

Synopsis

SSAP 13 defines three categories of research and development costs – pure research, applied research and development.

• Pure and applied research costs should be written off to the profit and loss account as they are incurred.
• Development expenditure should be written off in the year of expenditure unless five specific criteria are met.
• If these criteria are met then the development expenditure can be deferred by capitalising as an intangible asset and amortising. 

• Read FRC Summary on SSAP 13

Last updated 21 June 2015