research and development costs

research and development costs
The costs to a company of its research and development. Statement of Standard Accounting Practice 13, Accounting for Research and Development, distinguishes between pure research, applied research, and development.
• Pure research is original investigation undertaken to gain new scientific or technical knowledge and understanding, but without any specific applications.
• Applied research is original investigation undertaken to gain new scientific or technical knowledge with a specific practical aim or objective.
• Development is the use of scientific or technical knowledge to produce new or substantially improved materials, devices, products, processes, systems, or services prior to the commencement of commercial production. Under this Statement the costs of pure and applied research should be written off in the year in which they were incurred. In the case of development expenditure, if there is reasonable expectation that the product or process involved is likely to create future income, then the company has the option of capitalizing the development costs, thereby creating an intangible asset to be shown on the balance sheet In all other circumstances development expenditure must be written off to the profit and loss account as soon as it is incurred.

Big dictionary of business and management. 2014.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • research and development costs — The costs to a company of its research and development. Statement of Standard Accounting Practice 13, Accounting for Research and Development, distinguishes between pure research, applied research, and development. • Pure research is original… …   Accounting dictionary

  • Research and development in Japan — Research and development are important to the Japanese economy.As its economy matured in the 1970s and 1980s, Japan gradually shifted away from dependence on foreign research. Japan s ability to conduct independent research and development became …   Wikipedia

  • research and development — Introduction abbreviation  R and D,  or  R & D,         in industry, two intimately related processes by which new products and new forms of old products are brought into being through technological innovation. Introduction and definitions        …   Universalium

  • research and development — /rɪˌsɜ:tʃ ən dɪ veləpmənt/ noun 1. scientific investigation which leads to making new products or improving existing products ● The company spends millions on research and development. Abbreviation R&D 2. activities that are designed to produce… …   Dictionary of banking and finance

  • Neglected tropical disease research and development — Neglected tropical diseases (NTDs) are a set of infectious diseases affecting an estimated 1.4 billion people worldwide. The classification of this group of neglected diseases is linked to their frequent neglect in public and private sector… …   Wikipedia

  • Defence Research and Development Organisation — Sanskrit: बलस्य मूलं विज्ञानम् Strength s Origin is in Science [1] Agency overvi …   Wikipedia

  • New York State Energy Research and Development Authority — The New York State Energy Research and Development Authority (NYSERDA), established in 1975, is a public benefit corporation, located in Albany, New York, with regional offices in NYC, Buffalo, and West Valley. NYSERDA offers information and… …   Wikipedia

  • Tank research and development — continues in many industrial countries despite the end of the Cold war. The funds involved are lower than when the United States and the Soviet Union were engaged in a massive arms race. Most of the tank design bureaus or arsenals now function… …   Wikipedia

  • development costs — See: research and development costs …   Accounting dictionary

  • development costs — See research and development costs …   Big dictionary of business and management

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”