R&D is supposed to be recorded in P&L as OPEX.
There are two major exceptions:
- If a certain R&D project is exceuted as a service to another Business then it should be captured as COGS
- If some R&D costs relate to Tangible Assets that have an alternative future use, the company can capitalize it by recording it in P&L as a Fixed Assets and amortize its cost over the projected lifetime.
See also
Business / Business Administration / Financial Management / Financial Accounting / Profit and Loss (P&L)