In-process R&D: To capitalize or expense?

Journal of Engineering and Technology Management - JET-M

Volumn 23, Issue 1-2 SPEC. ISS., 2006, Pages 18-32

  Deng, Zhen ^a   Lev, Baruch ^b  

^a CITY UNIVERSITY OF NEW YORK   (United States)

^b NEW YORK UNIVERSITY   (United States)

Author keywords

Capitalization; Cashflows; Intangibles; R D

Indexed keywords

COST ACCOUNTING; MERGERS AND ACQUISITIONS; RELIABILITY; TECHNOLOGY TRANSFER;

CAPITALIZATION; CASHFLOWS; FASB'S PROPOSAL; INTANGIBLES;

RESEARCH AND DEVELOPMENT MANAGEMENT;

EID: 33646179360     PISSN: 09234748     EISSN: 18791719     Source Type: Journal    
DOI: 10.1016/j.jengtecman.2006.02.003     Document Type: Article

References (16)

1. Aboody D., and Lev B. The value-relevance of intangibles: the case of software capitalization. Journal of Accounting Research Suppl. (1998) 161-191
2. Clem, A., Cowan, A.R., Jeffrey, C., 2004. Market reaction to proposed changes in accounting for purchased research and development in R&D intensive industries. Working paper, Iowa State University: Ames, IA.
3. Deng, Z., Lev, B., 1997. "Flash-then-flush": The valuation of acquired R&D-in-process. Working paper, New York University: New York, NY.
4. Deng, Z., Lev, B., 1999. The valuation of acquired R&D. Working paper, New York University: New York, NY.
5. Dowdell, T.D., Press, E., 2001. Restatement of in-process research and development write-offs: the impact of SEC scrutiny. Working paper, The Fox School of Business and Management, Temple University: Philadelphia, PA.
6. Dowdell T.D., and Press E. The impact of SEC scrutiny on financial statement reporting of in-process research and development expense. Forthcoming. Journal of Accounting and Public Policy (2004)
7. Financial Accounting Standards Board (FASB), 2001a. Statement No. 141, Business Combinations. Norwalk Connecticut.
8. Financial Accounting Standards Board (FASB), 2001b. Statement No. 142, Goodwill and Other Intangible Assets. Norwalk, Connecticut.
9. Hopkins P.E., Houston R.W., and Peters M.F. Purchase, pooling and equity analysts' valuation judgments. The Accounting Review 75 (2000) 257-281
10. Ijiri Y., and Jaedicke R. Reliability and objectivity of accounting measurements. The Accounting Review (1996) 474-483
11. Kothari S.P., Laguerre T.E., and Leone A.J. Capitalization versus expensing: evidence on the uncertainty of future earnings from capital expenditures versus R&D outlays. Review of Accounting Studies 7 4 (2002) 355-382
12. Lev B. Intangibles: Management, Measurement and Reporting (2001), Brookings Institution Press, Washington, DC
13. Lev B., and Sougiannis T. The capitalization, amortization and value-relevance of R&D. Journal of Accounting and Economics (1996) 107-138
14. Lev B., and Zarowin P. The boundaries of financial reporting and how to extend them. Journal of Accounting Research, Autumn (1999) 353-385
15. MacDonald E. SEC considers limits on acquisition write-offs. The Wall Street Journal (1998) 21
16. MacDonald E. Merging firms are renouncing R&D write-off. The Wall Street Journal (1999) 22