A company incurs research and development costs for a new software. How should these costs be treated under IFRS once the software is deemed technologically feasible?

• A. All research and development costs should be capitalized.
• B. Research costs should be expensed, but development costs can be capitalized.
• C. Research costs should be capitalized, but development costs should be expensed.
• D. All research and development costs should be expensed immediately.

Answer: (B)