CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Which of the following reflects the proper accounting treatment of internally developed patents?

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
Correct Answer: A

Patent development costs are considered research and development costs, and are expensed as incurred.

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.
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