Accounting · Accounting for Research and Development Costs

Consider the following statements regarding the accounting treatment of Research and Development (R&D) costs under standard accounting principles: Statement I: All expenditure incurred during the research phase of an internal project should be recognized as an expense in the period it is incurred and cannot be capitalized. Statement II: Development expenditure must be capitalized as an intangible asset even if the technical feasibility of the product has not yet been established, provided the amount spent is significant. Statement III: If an enterprise cannot distinguish the research phase from the development phase of an internal project, it should treat the entire expenditure as research expenditure and expense it accordingly. Which of the above statements are correct?