CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Which of the following costs is not capitalized in the cost of trademarks (under U.S. GAAP)?
A. Research and development fees
B. Costs incurred in connection with defending trademark rights
C. Attorney's fees
Explanation: Research and development costs for trademarks are never capitalized. They are always expensed.

User Contributed Comments 2

User Comment
u0302638 Under GAAP: research and development cost is never capitalized but expensed.
However under IFRS, the development cost portion can be capitalized.
111hal111 I thought this was a trick question. "Attorney's fees" might relate to some litigation that's completely unrelated to the trademark.
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