Question
On November 20, 2021, Hengrui Pharmaceuticals Co. announced that it decided to change capitalization point of R&D expenditure to make the measurement of R&D expenditure
On November 20, 2021, Hengrui Pharmaceuticals Co. announced that it decided to change capitalization point of R&D expenditure to make the measurement of R&D expenditure more in line with the company's actual situation.
Required:
(1) Describe the financial performance of Hengrui Co..
(2) What's the type of this change? And what's the method for the change?
(3) What are expected effects on the financial statements of Hengrui Co.. by this change?
(4) What are reasons for this change for Hengrui Co..
(5) What are usefulness and limitation of EPS?
Step by Step Solution
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Step: 1
Step 11 1 The financial performance of company is satisfactory 2 The method of R D capital expenditu...
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Data Analysis And Decision Making
Authors: Christian Albright, Wayne Winston, Christopher Zappe
4th Edition
538476125, 978-0538476126
