[Anonymous]

When do you capitalize research and/or development costs and when do you expense them? Under both GAAP and IFRS? I’m very confused on this. Thanks to anyone that can help.

[stoleway]

R & D are never capitalized, they are always expensed in the period incurred.

It gets muddy with software, so be on the look out.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

R & D are never capitalized, they are always expensed in the period incurred.

It gets muddy with software, so be on the look out.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[UHC2005]

For IFRS remember the phrase technical and commercial feasibility. Research is expensed as incurred, development is capitalized only after technical and commercial feasibility of the asset for sale or use has been established.

This phrase stuck in my head from my auditing class.

https://www.iasplus.com/en/standards/ias/ias38

Using Ninja MCQ, NINJA Notes, Audio, Flashcards and BLITZ, and 2014 Wiley Text

FAR - (61,63)
AUD - (68)

Keep Calm and RTMFQ

Accountant, what is best in life? To crush your MCQs, see them driven before you, and hear the lamentation of their SIMS!

[UHC2005]

For IFRS remember the phrase technical and commercial feasibility. Research is expensed as incurred, development is capitalized only after technical and commercial feasibility of the asset for sale or use has been established.

This phrase stuck in my head from my auditing class.

https://www.iasplus.com/en/standards/ias/ias38

Using Ninja MCQ, NINJA Notes, Audio, Flashcards and BLITZ, and 2014 Wiley Text

FAR - (61,63)
AUD - (68)

Keep Calm and RTMFQ

Accountant, what is best in life? To crush your MCQs, see them driven before you, and hear the lamentation of their SIMS!

[NJPRU]

UHC I loveeeeeee your avitar. bwahahahahaha

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[NJPRU]

UHC I loveeeeeee your avitar. bwahahahahaha

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Not a Quitter]

As for GAAP:

-Development of software for internal use is likely excluded from the applicability of FASB ASC 730-10-15-5.

-Marketing research is specifically excluded from the definition of research and development by FASB ASC 730-10-15-4.

Research and development costs are defined as the “planned research…for new knowledge” and “the translation of research findings…into a…design for a new product or process.” (FASB ASC 730-10-20)

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[Not a Quitter]

As for GAAP:

-Development of software for internal use is likely excluded from the applicability of FASB ASC 730-10-15-5.

-Marketing research is specifically excluded from the definition of research and development by FASB ASC 730-10-15-4.

Research and development costs are defined as the “planned research…for new knowledge” and “the translation of research findings…into a…design for a new product or process.” (FASB ASC 730-10-20)

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[UHC2005]

Lol, thanks.

Using Ninja MCQ, NINJA Notes, Audio, Flashcards and BLITZ, and 2014 Wiley Text

FAR - (61,63)
AUD - (68)

Keep Calm and RTMFQ

Accountant, what is best in life? To crush your MCQs, see them driven before you, and hear the lamentation of their SIMS!

[UHC2005]

Lol, thanks.

Using Ninja MCQ, NINJA Notes, Audio, Flashcards and BLITZ, and 2014 Wiley Text

FAR - (61,63)
AUD - (68)

Keep Calm and RTMFQ

Accountant, what is best in life? To crush your MCQs, see them driven before you, and hear the lamentation of their SIMS!

[Author]

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