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Basic Question 11 of 12
Which of the following reflects the proper accounting treatment of internally developed patents?
B. Expense as a non-operating item under other expenses and losses
C. Capitalize as an intangible asset and amortize
A. Expense immediately as research and development costs
B. Expense as a non-operating item under other expenses and losses
C. Capitalize as an intangible asset and amortize
User Contributed Comments 5
| User | Comment |
|---|---|
| achu | INTERNAL - key word here. |
| swisha | ^^good catch |
| Shaan23 | Again I guess we're assuming GAAP.... |
| mmccoy | GAAP is assumed unless stated otherwise |
| khalifa92 | all internally developed are expenses other than IFRS one exception. |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
describe general principles of expense recognition, specific expense recognition applications, implications of expense recognition choices for financial analysis and contrast costs that are capitalized versus those that are expensed in the period in which they are incurred
CFA® 2024 Level I Curriculum, Volume 2, Module 2.