Question
In this discussion create a post that will address the questions raised in either Part I or Part II. Part I Companies need to innovate
In this discussion create a post that will address the questions raised in either Part I or Part II.
Part I
Companies need to innovate and develop new products to remain competitive.
Research and Development (R&D) expenditures can lead to innovation and new product development.
Since 1974 US Generally Accepted Accounting Principles (GAAP) has required the expensing of that research and development expenditures.
In a post define how research and development expenditure is defined and the types of expenditures that are included in it.
Do you think that expensing of research and development causes investors to disregard income statement results for companies with heavy R&D expenditures such as Amazon or Tesla?
Part II
When an organization acquires another company with new or developed technology the fair value of the research can be recorded as an intangible asset.
In a post explain what in-process and developed technology assets are and when can they be amortized.
Do you think US accounting standards encourages companies to purchase R&D through acquisitions rather than to undertake their own internal R&D.
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