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How would analysts be better served if gaap required capital

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Reference no: EM131119017

U.S. GAAP requires firms to expense immediately all internal expenditures for R&D costs. Alternatively, GAAP could require firms to capitalize and subsequently amortize all internal expenditures on R&D that have future potential. Why have standard setters chosen not to allow the capitalization alternative? How would analysts be better served if GAAP required capitalization of R&D costs?

Reference no: EM131119017

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