Discussion:Research and Development
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| Revision as of 23:49, 1 October 2007 Bottom Line (Talk | contribs) (Well, you got me) ← Previous diff |
Current revision Skq9545 (Talk | contribs) (Bottom Line: Tha) |
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| {{ForumReplyPost|UserID=Bottom Line|Date=1 October 2007|Text=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.}} | {{ForumReplyPost|UserID=Bottom Line|Date=1 October 2007|Text=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.}} | ||
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| + | {{ForumReplyPost|UserID=Skq9545|Date=October 3, 2007|Text=Bottom Line: Thanks, that is exactly what I did and R&D has to be expensed. }} | ||
Current revision
Discussion Forum Index --> Accounting Questions --> Research and Development
| 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. | |
| October 3, 2007 | |
| Bottom Line: Thanks, that is exactly what I did and R&D has to be expensed. | |
