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AstraZeneca has spent $1.5 billion on research and development (R&D) of a new medicine in 2016. AstraZeneca decided to capitalize (i.e., create an asset on
AstraZeneca has spent $1.5 billion on research and development (R&D) of a new medicine in 2016. AstraZeneca decided to capitalize (i.e., create an asset on the balance sheet) $1.5 billion and amortize it over the next 5 years, arguing that the expenditure will benefit the firm for the next 5 years.
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The treatment of research and development RD expenses in accounting can be a complex issue and whether AstraZenecas decision to capitalize and amortiz...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
