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Unformatted text preview: 2. Describe the accounting for research and development costs, including the reason for the current accounting treatment. Companies must expense all research and development costs when incurred according to GAAP. Research and Development, and start up costs do not qualify as assets because they do not have probable future economic benefit, thus it must be expensed. 3. Describe the accounting for indefinite life intangible assets other than goodwill, e.g., valuation, amortization (if applicable), and impairment. Examples: trademark Do not amortize indefinite life IA, instead you must test annually for impairment. Impairment-use fair value test: compare the FV of IA with the assets carrying amount. If the FV < carrying amount, then recognize an impairment loss....
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This note was uploaded on 02/12/2012 for the course BT 1003 taught by Professor As during the Spring '11 term at American Jewish University.
- Spring '11