U.S. GAAP requires firms to expense all
Question # 00569858
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Updated on: 08/02/2017 06:32 AM Due on: 08/02/2017
Research and Development Costs
U.S. GAAP requires firms to expense all the internal expenditures immediately for research and development (R&D) costs. As an alternative, U.S. GAAP could require ?rms to capitalize and then amortize all internal expenditures on R&D that have future potential.
- Why have those who have set the standards chosen to disallow the capitalization alternative?
- How would the U.S. GAAP requiring capitalization of R&D costs benefit analysts’ interests?
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Solution: U.S. GAAP requires firms to expense all