Intangibles and Research and Development Cost
“ Please respond to the following:
- Write this in your own words. Your own words. Absolutely your own words. What is the main issue when considering the accounting for R&D expenses? Which argument do you support and why?
The main issue with accounting R&D expenses has always been how we view them and where we post them in our balance sheet. The common practice is to treat them as expenses despite the fact that they clearly fit the definition of an asset according to accounting rules. The rules define an asset as something with future…