Brands their capitalization is prohibited cost

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: lear connection between the development costs and expected future earnings of the individual projects. Finland The general principle is that intangible assets are allowed to be capitalized only if they are expected to yield income in the future. Research and development expenditures are included in intangible assets and can be capitalized if they are substantial. France Recorded at acquisition cost. Recorded at production cost. Patents : patent development costs are expensed. At closing date, these expenses can be capitalized (R&D account) if the capitalization criteria are met. Brands: their capitalization is prohibited. Cost incurred in the start-up of a business (incorporation costs such as legal publicity, or consultants’ fees ), may be capitalized as intangible assets. Expenses to be allocated for future periods: several types of expenses are included in this item and may be capitalized: debt issue costs, deferred charges, fixed asset acquisition costs and charges to be spread over several years. R&D expenditures are expensed as incurred unless: (1) They specifically relate to a product manufacturing order, in which cas...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online