Week 4: R&D

Question 1

Research vs Development

Answer 1

Research is research, development is when the product is commercially approved (such as by the FDA)

Question 2

Means that the product will go to market

Answer 2

Commercially viable

Question 3

Capitalized

Answer 3

Means you record it as an asset

Question 4

R&D in IFRS vs USG

Answer 4

IFRS: Research costs are expensed and development costs are capitalized

USG: Both research and development is expensed

Question 5

Benefits of each accounting system in regards to R&D? Which is better?

Answer 5

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

Question 6

Capitalizing over…

*verify

Answer 6

40 years