Innovation becomes a necessary activity for most organizations to ensure that they are able to maintain their competitive advantage. Innovation requires significant research and development. Define, and distinguish between research and development. Using the ‘Selective Capitalization Method’ required by AASB138 outline treatment of research and development costs include details on the conditions that are required to be met in accordance with AASB138, paras 21-23.

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Research is more theoretical in nature although usually oriented to some practical objective and is based on analytical knowledge Development is essentially applied and based on synthetic knowledgeAsh... View the full answer