Discussion of the Economic Effects of Involuntary Uniformity in the Financial Reporting of R&D Expenditures and Accounting for Research and Development Costs: The Impact on Research and Development Expenditures

1980 ◽  
Vol 18 ◽  
pp. 84 ◽  
Author(s):  
William Marshall
Keyword(s):  
Research And Development ◽  
Financial Reporting ◽  
Economic Effects ◽  
Development Costs ◽  
The Impact

Managerial Discretion and Accounting for Research and Development Costs

2003 ◽  
Vol 18 (1) ◽  
pp. 79-114 ◽  
Author(s):  
Dennis Chambers ◽  
Ross Jennings ◽  
Robert B. Thompson
Keyword(s):  
Research And Development ◽  
Financial Reporting ◽  
Managerial Discretion ◽  
The Other ◽  
Financial Statement ◽  
Share Prices ◽  
Development Costs ◽  
The Impact ◽  
Book Values

This study investigates the extent to which potential financial reporting benefits from capitalizing and amortizing R&D costs depend on increasing the level of discretion permitted to financial statement preparers. To provide evidence on this issue, we examine the impact of alternative accounting schemes for R&D costs on the extent to which earnings and book values jointly explain the observed distribution of share prices. One alternative requires firms to capitalize and amortize R&D outlays, but provides them with no more discretion than that permitted under current rules. The other alternatives reflect increasing discretion over which R&D costs are recognized as assets and the periods over which these assets are amortized. We find that ability to explain the distribution of share prices increases with discretion, and conclude that substantial managerial discretion is likely to be a necessary (though not sufficient) ingredient of any alternative R&D accounting scheme that is capable of producing economically significant financial reporting benefits.

The Impact of Different Accounting Reporting Methods on the Informativeness of Research and Development Costs: IFRS Compared to U.S. GAAP

2016 ◽  
Vol 19 (04) ◽  
pp. 1650025 ◽  
Author(s):  
Michael T. Dugan ◽  
John E. McEldowney ◽  
Elizabeth H. Turner ◽  
Clark M. Wheatley
Keyword(s):  
Research And Development ◽  
Information Content ◽  
Direct Effect ◽  
Indirect Effect ◽  
Value Relevance ◽  
Operating Income ◽  
Development Costs ◽  
Before And After ◽  
The Impact

In this paper, we examine the information content and value relevance of research and development (R&D) costs before and after the SEC eliminated the 20-F reconciliation to U.S. GAAP for Foreign Public Issuers (FPIs). Prior to the elimination both FPIs and U.S. firms experienced an increase in the indirect effect of R&D on operating income. After the requirement was eliminated, the direct effect increased for FPIs and the indirect effect decreased. This is in contrast to U.S. firms who experienced a continued increase in the indirect effect. This shift indicates there was a loss of informativeness in the R&D disclosures for FPIs.

scholarly journals Impact of Technological Innovation, Research and Development on the Defense Economy - Iran Country

2021 ◽  
Vol 7 (1) ◽  
pp. 59-74
Author(s):  
Bahman Khanalizadeh ◽  
Neda Ranjandish
Keyword(s):  
Economic Growth ◽  
Research And Development ◽  
Technological Innovation ◽  
Military Spending ◽  
Short Term ◽  
Arms Sales ◽  
Innovation Research ◽  
Development Costs ◽  
The Impact

The Purpose. This research is to investigate the relationship between the variables of technological innovation, research and development costs, economic growth, sales and export of weapons and military costs in Iran for the years 2000 to 2017. Design/Methodology/Approach. In this study, we examine using Autoregressive Distributed Lag (ARDL) method to explore the estimating the impacts of technological innovation, research and development costs, economic growth, sales and export on military costs. Findings/Implications. The results of this study showed that the impact of technological innovation and research and development costs on military costs is negative in short-term and long-term. Although the effect that these two variables have on military spending in the short-term is very close, in long-term the effect that research and development costs have on military spending is far greater and more significant. Also, the impact of economic growth on Iran’s defense economy is much less than the variables of technological innovation and research and development costs. So that this effect will be less in long-term. But, the amount of arms sales and exports in the short-term has a positive effect on defense spending, but in long-term it becomes negative and increase in arms sales and exports can help Iran’s defense economy. Originality. The countries defense economy can always have positive effects on military and civilian research and development, scientific innovation and technological progress, in this condition that the country’s macroeconomics can spend military spending on research and development and support innovation and inventions. Eventually adopt arrangements that use the innovations of the defense industry in the civilian sector, which will lead to economic growth. This is the experience of many developed countries that have been able to use the technological advances and innovations of the military sector in the civilian sectors as well, and to cause the economic progress and development of their country.

Enforcing Financial Reporting Standards: The Case of White Pharmaceuticals AG

2011 ◽  
Vol 26 (3) ◽  
pp. 619-632 ◽  
Author(s):  
Henning Zülch ◽  
Dominic Detzen
Keyword(s):  
Research And Development ◽  
Financial Reporting ◽  
Financial Statements ◽  
Reporting Standards ◽  
Cooperation Agreement ◽  
Actual Case ◽  
Instructional Resource ◽  
Financial Reporting Standards ◽  
Development Costs

ABSTRACT This instructional resource is based on an actual case of financial reporting enforcement and invites students to reflect on two main themes: the treatment of research and development costs and the enforcement of financial reporting standards. First, students are to analyze a cooperation agreement under which German company White Pharmaceuticals AG receives access to the research and development results of their U.S.-based partner. While applying managerial judgment in interpreting the transaction, students review the treatment of internally generated and separately acquired intangible assets under IFRS and U.S. GAAP. In addition, they are asked to discuss the convergence of the two major accounting regimes. Second, the case study fosters students' understanding of how financial reporting standards are enforced when the German Financial Reporting Enforcement Panel (FREP) starts an investigation into how White Pharmaceuticals AG accounted for payments that the company conducted in the course of the cooperation. Students become aware of the consequences such an investigation may have as the FREP finally adjudges that White Pharmaceuticals AG should restate their financial statements.

Pengaruh Budaya Terhadap Akuntansi, Auditing Dan Praktik Akuntansi Internasional

2016 ◽  
Vol 3 (1) ◽  
pp. 78-95
Author(s):  
Priyastiwi Priyastiwi
Keyword(s):  
Cultural Values ◽  
Leadership Style ◽  
Financial Reporting ◽  
National Level ◽  
Deep Understanding ◽  
Cultural Dimensions ◽  
Financial Disclosure ◽  
Cross Cultural Differences ◽  
The Future ◽  
The Impact

The purpose of this article is to provide the basic model of Hofstede and Grays’ cultural values that relates the Hofstede’s cultural dimensions and Gray‘s accounting value. This article reviews some studies that prove the model and develop the research in the future. There are some evidences that link the Hofstede’s cultural values studies with the auditor’s judgment and decisions by developing a framework that categorizes the auditor’s judgments and decisions are most likely influenced by cross-cultural differences. The categories include risk assessment, risk decisions and ethical judgments. Understanding the impact of cultural factors on the practice of accounting and financial disclosure is important to achieve the harmonization of international accounting. Deep understanding about how the local values may affect the accounting practices and their impacts on the financial disclosure are important to ensure the international comparability of financial reporting. Gray’s framework (1988) expects how the culture may affect accounting practices at the national level. One area of the future studies will examine the impact of cultural dimensions to the values of accounting, auditing and decision making. Key word : Motivation, leadership style, job satisfaction, performance

Advancing dairy farming profitability through research

2001 ◽  
pp. 17-22
Author(s):  
J.R. Caradus ◽  
D.A. Clark
Keyword(s):  
Research And Development ◽  
Dairy Cow ◽  
Low Cost ◽  
Pasture Management ◽  
Nitrogen Fertiliser ◽  
Grass Endophyte ◽  
Forage Species ◽  
Development Outcomes ◽  
Dairy Cow Nutrition ◽  
The Impact

The New Zealand dairy industry recognises that to remain competitive it must continue to invest in research and development. Outcomes from research have ensured year-round provision of low-cost feed from pasture while improving productivity. Some of these advances, discussed in this paper, include the use of white clover in pasture, understanding the impacts of grass endophyte, improved dairy cow nutrition, the use of alternative forage species and nitrogen fertiliser to improve productivity, demonstration of the impact of days-in-milk on profitability, and the use of feed budgeting and appropriate pasture management. Keywords: dairy, profitability, research and development

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