Research and Development Costs

question 35

Multiple Choice

Research and development costs

• A) are generally written off immediately to earnings in the United States.
• B) are typically capitalized and amortized.
• C) are not very significant due to the lack of R&D being done in the U.S. currently.
• D) are split into two parts by the IASB. Research costs should be capitalized, whereas development costs should be written off.

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