- 25 junio, 2017
- Publicado por: admin
- Categoría: FIN
1. The FASB has been asked to explain the applicability of FASB Statement No. 2, «Accounting for Research and Development Costs,» to development stage enterprises.
2. In July 1974 the FASB issued an exposure draft of a proposed Statement titled «Accounting and Reporting by Development Stage Companies, Subsidiaries, Divisions and Other Components.» A final Statement on this subject has not yet been issued.
3. Broad guidelines about the activities to be classified as research and development and the elements of costs to be identified with those activities are set forth in paragraphs 8-11 of Statement No. 2. Paragraph 12 of that Statement provides that research and development costs shall be charged to expense when incurred. However, some costs associated with research and development activities shall be capitalized if the item has alternative future uses in research and development or otherwise (see paragraphs 11(a) and 11(c) of Statement No. 2). The costs of materials consumed, the depreciation of equipment and facilities used, and the amortization of intangibles used in research and development activities are research and development costs.
4. Some development stage enterprises have adopted special accounting practices or forms of financial statement presentation and types of disclosure that are different from those used by established operating enterprises. Special accounting practices include deferral of preoperating costs (sometimes including general and administrative costs and interest costs), non-assignment of dollar amounts to shares of stock issued for consideration other than cash, and offset of revenue against deferred costs. Special financial reporting formats may consist of presentation of statements of (a) assets and unrecovered preoperating costs, (b) liabilities, (c) capital shares, and (d) cash receipts and disbursements; or other formats.
5. Other development stage enterprises prepare financial statements like those of established operating enterprises that present financial position, changes in financial position, or results of operations in conformity with generally accepted accounting principles.