Discussion:Research and Development

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Revision as of 18:24, 1 October 2007

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.
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