Is It Time for New Accounting of R&D Costs?

Date
2001-01-01
Authors
Clem, Anne
Jeffrey, Cynthia
Jeffrey, Cynthia
Major Professor
Advisor
Committee Member
Journal Title
Journal ISSN
Volume Title
Publisher
Altmetrics
Authors
Research Projects
Organizational Units
Accounting
Organizational Unit
Journal Issue
Series
Department
Accounting
Abstract

The mismatch between today's "high-tech economy" and the double-entry accounting system has raised serious questions about the quality of earnings. The Securities and Exchange Commission (SEC) has targeted overly aggressive earnings management, focusing on acquired in-process research and development (IPR&D). Some people are concerned that the SEC crackdown on IPR&D valuations has the potential to slow the pace of mergers and acquisitions significantly, hamper the formation of new companies, and decrease the value of a company's stock. Financial managers on either side of the debate will need a clear understanding of the issues when evaluating potential acquisitions.

Comments

This article is published as Clem, A. and C. Jeffrey. 2001. Is It Time for New Accounting of R&D Costs? Strategic Finance, August, 83(2); 50-55. Posted with permission.

Description
Keywords
Citation
DOI
Source
Collections