QUESTION 17 The problem with a blanket rule' requiring all expenditure of a particular type to be written off as incurred (e.g expenditure on research) is that it is too much like US GAAP o it does not enable readers of financial statements to differentiate between entities that have generated future economic benefits from particular activities and entities that have not it does not enable readers of financial reports to differentiate between entities that have managed their earnings and those that have not it does not enable readers of financial reports to differentiate between entities that are going to continue to be successful and those that are not