SaaS

Software Research Phase (Expensing)

Recording costs for the initial research phase of a new software feature.

Account NameTypeDebit ($)Credit ($)
Research & Development ExpenseExpense (+)5,000.00-
Cash / Salaries PayableMixed-5,000.00

💡 Accountant's Note

Under IFRS/IAS 38, costs in the 'Research' phase can never be capitalized. They must be expensed immediately until the project reaches 'Technical Feasibility'.

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Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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