Hello Limited is a company that manufactures telephones under its own brand, as well as distributing and selling other telephone brands. Recently Hello Ltd has been conducting a research project to develop a mobile phone with various functions that could be used underwater. The company is hiring experts from around the world and is spending a considerable amount of money to fund this project.

Refer to the conceptual framework to discuss whether the amount spent for the research project should be considered as an asset and recognized in the statement of financial position.