In this era of rapidly changing technology research and

Reference no: EM13588697

In this era of rapidly changing technology, research and development (R&D) expenditures represent one of the most important factors in the future success of many companies. Organizations that spend too little on R&D risk being left behind by the competition. Conversely, companies that spend too much may waste money or not be able to make efficient use of the results.In the United States, all R&D expenditures are expensed as incurred. However, expensing all R&D costs is not an approach used in much of the world. Firms using IFRS must capitalize development costs as an intangible asset when they can demonstrate

(1) the technical feasibility of completing the project, (2) the intention to complete the project, (3) the ability to use or sell the intangible asset, (4) how the intangible asset will generate future benefits, (5) the availability of adequate resources to complete the asset, and (6) the ability to measure development costs associated with the intangible asset.Should any portion of R&D costs be capitalized? Is expensing all R&D expenditures the best method of reporting these costs? Is the U.S. approach better than the international standard? Which approach provides the best representation of the company%u2019s activeties?

Reference no: EM13588697

Questions Cloud

Clopack company manufactures one product that goes through : clopack company manufactures one product that goes through one processing department called mixing. all raw materials

Two persons were sharing profits in the ratio of 32 they : two persons were sharing profits in the ratio of 32. they decided to admit chairman into the partnership for 16 th

David drayer is the lead partner in a local accounting firm : david drayer is the lead partner in a local accounting firm whose practice consists of tax consulting and compliance.

Clarence weatherspoon a super salesman contemplating : clarence weatherspoon a super salesman contemplating retirement on his fifty-fifth birthday decides to create a fund on

In this era of rapidly changing technology research and : in this era of rapidly changing technology research and development rampd expenditures represent one of the most

Uxmaiz corporation had only one job in process during : uxmaiz corporation had only one job in process during may-job x32z- and had no finished goods inventory on may 1. job

Green corporation a calendar year taxpayer had a deficit in : green corporation a calendar year taxpayer had a deficit in accumulated eampp of 250000 at the beginning of the current

Fully depreciated equipment costing 60000 was scrapped no : the comparative balance sheet of posner company for 2011 and the preceding year ended december 31 2010 appears below in

Find and mark the following vernal equinox first : 1 the relationship of the seasons to the suns elevation at solar noon plotting the suns elevation at solar noon you are

User Account

All Pages