Do political decisions influence GAAP? Maybe some, yes
Not what you're looking for?
Research and Development and Start Up costs associated with development are expensed as incurred. Explain the rationale? Do you feel that this treatment is consistent with accounting principles? Why or why not?
Purchase this Solution
Solution Summary
The solution gives a little history about R&D in the drug industry and explains the reasons for allowing for write-offs of R&D. It provides a conclusion about that politics of those writeoffs.
Solution Preview
The rationale of expensing R&D costs under generally accepted accounting principles is not a valid supposition. Considering the matching principle, R&D costs that result in a viable product should be amortized over the product life - often a patent. The life is defined; the costs are defined and the issue is fairly straight forward.
Further, R&D costs that don't result in a marketable product would be written off at a point in ...
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Learning Lean
This quiz will help you understand the basic concepts of Lean.