R&D costs should be capitalized and amortized over the years of their usefulness, rather than burdening a single year's profits, since such expenses benefit a number of future years of production and selling. Challenges that this policy would create Financial statement preparers: i) They must gather and recall the unamortized amount at the end of every year, without fail, for all future years in which it is chosen to be amortized. ii) This is particularly inconvenient when extra costs arise year after year. iii) Failure to meet the above two criteria will have an impact on the year's profitability. Auditors: i) They must check the charge every year with the original document, which will need the retrieval of previous financial documents. ii) As stated before, this is particularly inconvenient when extra costs are spent year after year. iii) The amount of costs must be justified in terms of profitability