This preview shows page 1. Sign up to view the full content.
Unformatted text preview: that for taxation
the accepted period of depreciation of these items has generally been 10 years.
The general provision states that R&D costs shall be treated with prudence as intangibles and
are to be be depreciated over a period not exceeding 20 years.
Start-up costs and similar expenses are to be amortized over a period not exceeding 5 years,
as are R&D costs. Franchises, patents and trademarks are amortized over their useful lives.
Under the Fourth EU Directive, purchased business goodwill should be amortized over 5
years or over its estimated useful life if other than 5 years.
The French practice considers that intangibles that are deemed to have an infinite useful life,
such as goodwill (or trademarks), are not required to be amortized.
Capitalized R&D expenditures must be amortized over a period not exceeding 5 years. There
are no clearly established rules concerning the starting date for amortization. In exceptional
circumstances, relating only to particular projects, capitalized R&D expenditures may be
amortized over a longer period not exceeding the useful life of the assets.
If the consid...
View Full Document
This note was uploaded on 05/02/2013 for the course ECONOMIC economics taught by Professor Economics during the Fall '13 term at Elmont Memorial High School.
- Fall '13
- The Land