Week 4: R&D Flashcards
1
Q
Research vs Development
A
Research is research, development is when the product is commercially approved (such as by the FDA)
2
Q
Means that the product will go to market
A
Commercially viable
3
Q
Capitalized
A
Means you record it as an asset
4
Q
R&D in IFRS vs USG
A
IFRS: Research costs are expensed and development costs are capitalized
USG: Both research and development is expensed
5
Q
Benefits of each accounting system in regards to R&D? Which is better?
A
USG is good because on taxes it won’t be taxed as an asset
IFRS is better because the book value of your company will increase
6
Q
Capitalizing over…
*verify
A
40 years
