(a) Distinguish between research expenditure and development expenditure. (b) Explain the accounting treatment required by IAS38 in...

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(a) Distinguish between research expenditure and development expenditure.
(b) Explain the accounting treatment required by IAS38 in relation to each of these types of expenditure.
(c) During the year to 31 July 2020, a pharmaceuticals company spent a total of £830,000 on research and development. Of this amount, £370,000 was spent on an unsuccessful attempt to find a cure for the common cold. The remaining £460,000 was spent on the development of a new range of cosmetic products. How should this expenditure be accounted for in the company's financial statements?

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