U.S. GAAP Codification of Accounting Standards

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U.S. GAAP Accounting Standards
Codification Topic 730: Research and Development


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Codification Topic 730
Research and Development


Research and Development Costs

SFAS 2, October 1974
"Accounting for Research and Development Costs"

General rule for research and development costs
Research and development costs are
--> charged to expense when incurred
--> because future economic benefits are uncertain

Research and development (R&D) costs
1. tangible assets
2. intangible assets
3. personnel costs
4. indirect costs
5. contract costs
6. computer software costs

Tangible assets acquired for R&D activities
1. If the assets have alternative future uses
--> capitalized as an asset
--> cost of consumption or depreciation is charged to expense

2. If the assets do not have alternative future uses
--> expensed at the time of acquisition

Intangible assets acquired for R&D activities
1. If the assets have alternative future uses
--> capitalized as an asset
--> amortization is charged to expense

2. If the assets do not have alternative future uses
--> expensed at the time of acquisition

Personnel costs, indirect costs, contract costs
--> expensed when incurred

Computer software costs
1. Software developed internally for R&D activities
--> all costs are expensed when incurred
--> alternative future uses are not considered
--> development phases are not considered

2. Software purchased for R&D activities
(1) if the software has alternative future uses
--> capitalize as an intangible asset
--> amortization is charged to expense

(2) if the software does not have alternative future uses
--> expensed when incurred


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   Codification Topic 730
   Research and Development
 
Subtopics of Codification Topic 730
 
   730-10 Overall
   730-20 Research and development arrangements     
 
Accounting Terms of Codification Topic 730-10
 

   Research and development   
 
Accounting Terms of Codification Topic 730-20
 
   Probable
   Related parties
   sponsor




   Other Topics at the Codification 700 
Accounting Standards Codification, ASC, Overview
 
ASC Codification Topic 705: Cost of Sales and Services
 
ASC Codification Topic 710: Compensation-General
ASC Codification Topic 712: Compensation-Nonretirement Postemployment Benefits
ASC Codification Topic 715: Compensation-Retirement Benefits
ASC Codification Topic 718: Compensation-Stock Compensation
 
ASC Codification Topic 720: Other Expenses
 
ASC Codification Topic 730: Research and Development
 
ASC Codification Topic 740: Income Taxes


   U.S. GAAP Codification of Accounting Standards
Accounting Standards Codification, ASC, Overview
ASC Codification 200: Presentation
ASC Codification 300: Assets
ASC Codification 400: Liabilities
ASC Codification 500: Equity
ASC Codification 600: Revenue
ASC Codification 700: Expenses
ASC Codification 800: Broad Transactions
ASC Codification 900: Industry

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