From TaxAlmanac, A Free Online Resource for Tax Professionals
From TaxAlmanac
Discussion Forum Index --> Accounting Questions --> Research and Development
Skq9545 (talk|edits) said:
| October 1, 2007
|
| This is a general question regarding research and development costs and the Balance Sheet and P&L Statement. It is my understanding that the general rule for R&D is to expense in the current period. The exceptions are materials, equipment or facilities that have alternate future uses or R&D costs on behalf of others under a contractual arrangement. Client is wanting to capitalize R&D because to expense makes the P&L show a negative income. Client is developing an improved process for services, not a tangible product as far as I know. Has anything changed in this arena or the past couple of years that maybe I am not aware of? Thanks for your responses.
|
Bottom Line (talk|edits) said:
| 1 October 2007
|
| Well, you got me to pull out my old Intermediate Accounting book. You may want to review FASB Statement No. 2 and read the specifics of the business into the Statement.
|
Skq9545 (talk|edits) said:
| October 3, 2007
|
| Bottom Line: Thanks, that is exactly what I did and R&D has to be expensed.
|
To join in on this discussion, you must first
log in.
