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  1. If a certain R&D project is executed as a service to another Business then it should be captured as COGS

  2. If some R&D costs relate to Tangible Assets that have an alternative future use , the company can capitalize it by recording it then it can be capitalized as a Fixed Assets and depreciate its cost over then depreciated over the projected lifetime of the developed Product

  3. If R&D is a critical component of the Business which drives the Sales growth then Financial Management may choose a policy of capitalizing the Development part or even a full-amount of R&D expense and then amortize it over the projected lifetime of the developed Product

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