Explain how IFRS vs US GAAP treats R&D costs.
Retrieve in .xlsx format, complete, and submit the preclass work 5.
READINGS:
Capital Expenditure vs Expense by Baylor Tutoring Center
Watch this short video to understand the difference between expensing and capitalising.
Bogle, Kevin (n.d.) IFRS vs. US GAAP: R&D costs. Insight Article.
This article explains how IFRS vs US GAAP treats R&D costs. As stated in the article “The accounting for research and development costs under IFRS can be significantly more complex than under US GAAP.” So you should pay attention to this paper.
Dingli, Jonathan. (2021). Capitalisation of internally generated intangible assets. Insights Article.
In addition to Bogle’s article, this article explains how to differentiate research from development for IFRS. Concentrate on the subsections “Distinction between Research and Development” and “Recognition criteria for internally generated intangible assets arising from the development phase.”
Accounting for Research and Development Costs by Farhat Lectures
Watch this short video to understand R&D is included in financial statements.
[[Optional] Merritt, Cam. (2019). Why Are R&D Expenses Not Capitalized?
](https://smallbusiness.chron.com/rd-expenses-not-capitalized-43690.html)
This article explains why Research & Development is not capitalized and how that affects financial statements.
[Optional] Kaye, L. (2012). Time to start valuing human capital as an asset on the balance sheet. The Guardian. Retrieved Guardian website.
This reading discusses the importance of “investing” in human capital and the implications of expensing those investments. It is also good for considering how this change in human capital and its value is related to changes in business (e.g., moving from businesses that produce things to businesses that produce knowledge/services).
[Optional] Mizik, N., and Nissim, N. (2011). Accounting for marketing activities: Implications for marketing research and practice. Working paper, Columbia Business School.
*** Skip pages 1 – 15 and read the rest (starting with section 3). You do not need to understand the Figures or Tables and may skip them too. ***
This reading makes a case for, and against, capitalizing marketing expenditures. It discusses the importance of marketing and the need to understand how it is currently disclosed on financial statements. The paper mainly assumes US GAAP however the idea that marketing expenditure could generate long-term intangible assets for a company is important.
[Optional] Litman, Joel and Spivey, Rob. (2016). R&D Is an Investment, Not an Expense – How capitalizing R&D impacts understanding corporate profitability. Resources.
This optional article provides a thorough discussion of R&D being an investment versus an expense using examples from two different industries.
Requirements: N/A
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
