1. Research expenditure incurred by a start-up company to invent a new process or product, the result of which is totally uncertain, and hence it is to be treated as revenue expenditure.
  2. When a new software has been coded after incurring research expenditure and the company aims to generate revenue by licensing the same, all the further expenses incurred to increase the finesse, speed, and security of the software, are to be treated as development expenses, which will later be capitalised.