CFA Practice Question

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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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