This excerpt taken from the GLUU 8-K filed Jan 25, 2008.
Research and development
Expenditure on research is written off in the period in which it is incurred.
Development expenditure is capitalised where it relates to a specific project where technical feasibility has been established, adequate technical, financial and other resources exist to complete the project, the expenditure attributable to the project can be measured reliably and overall project profitability is
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2. ACCOUNTING POLICIES (Continued)
reasonably certain. In this case, it is recognised as an intangible asset and amortised over its useful economic life, typically being a maximum period of eighteen months from the date the product is first sold or licenced. All other development expenditure is recognised as an expense in the period in which it is incurred.