The french practice considers that intangibles that

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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...
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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.

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