Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding.
Development is the application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes,
systems or services before the start of commercial production or use.
Ind AS 38:
The standard explicitly requires any expenditure on research phase to be recognised as an expense immediately. Further, any expenditure on development phase should be recognised as an intangible asset, if the recognition criteria are met.
