Speech Term paper

Submitted By ngocuong232
Words: 873
Pages: 4
Open Document
Slide 1Topic is about Research and Development expenditure under US GAAP and IFRS. I’m going to be focusing on internally generated costs
Why companies investing in R&D
Slide 2: It’s hard for companies to stay competitive to their competitor in their industry if they can’t hold the latest and most innovative technology. So investing in R&D helps companies stay competitive
Business performances: statically, in a survey in Canada in 2007, 44% of ideas of innovation come from the source of R&D. Thus, R&D help improve business performance.
Slide 3How companies in US and the world are investing in R&D? In US, for the year 2014 to come, US companies are expected to spend $ 465 billion into R&D activities; it means 2.7% percent of US GDP.
On the Europe side, company like Volkswagen spends $13.5 billion, Novartis spends $9.9 billions. That’s huge amount of money, thus it requires an appropriate accounting treatment for these costs.

Slide 4: Both US GAAP and IFRS recognize the importance of appropriate accounting treatment for R&D activities but take a different viewpoint on the method should be used. It’s clear that if future economic benefit gonna flow into the entity as the result of R&D activities. These cost should be classified as asset rather than expense. But whether future economic benefit are certain to flow into entity are impossible to predict. Thus the difference between GAAP and IFRS arise

Slide 5: Talk about how US GAAP account for R&D cost. The accounting standard here is ASC 730- Research and development. ASC 730 defines what is research and development. Types of R&D activities falls under scope of standard.
The general rules here are, except for some costs related to computer software, all the R&D costs are charged to expenses as it incurred. It means that all those costs must be categorized as expenses and written off to income in the Income statement. GAAP reason that at the time of R&D costs incurred, future economic benefits are uncertain, there’s not indication of economic resource has been created. Example 1: Company A is developing a new drug for cancer that has successfully completed first phase of testing. The drug is now still being developed and on later phases of testing. Company is still concerning about the approval of the drug from FDA has not stated any marketing yet. According to ASC 730-10-25-1 all costs of developing the drug shall be charged to expense as incurred, company can’t capitalize the R&D costs
Example2: Company A developed a mobile device and now on the way of developing to update and add new functionality to the device. According to ASC 730-10-25-1 all the costs of development of the new functionality are expensed as incurred. Company can’t capitalize these costs
Accounting for R&D in Pfizer: Pfizer is an American multinational pharmaceutical corporation headquartered in New York, one of the world largest pharmaceutical companies by revenues.
For the year 2013, R&D expense is about 6.6 billion dollar
GAAP page 62
Research and development expenses-operation 31
How account for R&D- page 65
Amortization of already capitalized page 91

IFRS
Accounting standard: IFRS doesn’t provide a specific guidance for R&D activities. However, the accounting treatment for R&D needs to be interpreted from IAS 38 Intangible Asset.
IAS 38 divides R&D activities into 2 phases: research phase and development phase. In the research phase it’s impossible to demonstrate
Show More

Related Documents: Speech Term paper

Self Analysis Essay 2 1

his/her how-to speech. The paper is worth 25 points. Your paper should demonstrate college-level writing skills, with attention to grammar and spelling. Be sure to write using well-developed paragraphs. Be sure to include an introduction and conclusion. Describe specific behaviors from your speech to support your opinions and incorporate terms and concepts from the text to demonstrate your understanding of the concepts. The following questions may help you to analyze your speech. Do not number…

Words 349 - Pages 2

Essay on Sec 310 Wk 8 Case Study 4 Bin Laden

2. Analyze each speech to consider whether it was one of victory or one of realized risk. 3. Determine whether you think the killing of Bin Laden has lowered or raised the fear of terrorism in most U.S. citizens. More Details hidden... Activity Mode aims to provide…

Words 1246 - Pages 5

COM101 Fall Day Skaf Essay

caused by perspective and perception differences and to be able to resolve communication conflicts. Listen attentively, respond appropriately, and give constructive and proactive feedback in their conversations. When speaking to a group or giving a speech, understand the audience, establish clear speaking goals, and appeal to the audience with logical, meaningful information, and verbal and visual aesthetic. Class Attendance: Attendance will be taken on the beginning of every class. Points will…

Words 793 - Pages 4

George Armitage Miller Essay

Being a member of the drama club is what introduced his interest in speech along with the influence of Professor Donald Ransdell who introduced Miller to psychology. For two years he taught an Introduction to Psychology class at Alabama. In 1943 he enrolled in the Ph.D. program at Harvard University, where he received his…

Words 1022 - Pages 5

Essay On Parliamentary Benefit

The term parliamentary benefit is utilized as a part of Constitutional compositions to signify both these sorts of rights and immunities. In the case of Raja Ram Pal v Hon’ble speaker defined the term privilege as “A special right, advantage or benefit conferred on a particular person. It is a peculiar advantage or favour granted to one person as against another to do certain acts”. Sir Thomas Erskine May has characterized the expression Parliamentary benefits as takes after: The whole of the…

Words 1868 - Pages 8

A Rhetorical Analysis Of Speech By Florence Kelley

that caught my eye. As I read the speech over a few times, I wasn’t exactly sure what I was looking for, but these two topics had been mentioned in the notes I had previously taken, and seemed like a reasonable basis for an essay. This was the first rhetorical analysis I have ever written, so it is rather weak. However, the paper does contain a few strengths that are worth noting. I feel that I did a decent job incorporating quotes and evidence from the speech into the essay. I tried to make sure…

Words 515 - Pages 3

Goldkuhl 2003 1 Essay

cornerstone can be found in speech act theory, but the basis for other must be searched for elsewhere. The paper investigates the origin for many LAP approaches, the Conversation-for-action schema of Winograd & Flores. It tries to detect an influence from the sociological approach of conversational analysis. Could conversational analysis be a basis for the study of communicative patterns within LAP? A discussion is pursued concerning differences between and possibilities to combine speech act theory and conversational…

Words 7936 - Pages 32

Martin Luther King Memorial Essay

determination, and the overall life of Dr. King. Manteuffel talks about the controversy of the words that were placed on the right side of Dr. King. “I was a drum major for justice, peace and righteousness,” this quote is from Dr. King’s famous “Dream” speech. This quote can make Martin Luther King seem arrogant to whoever reads this quote, the author goes on to write. The problem with this quote is that this is not exactly what Dr. King said. The author says, “This quote is awfully self-aggrandizing for…

Words 1964 - Pages 8

Rhetorical Analysis Of The Checker's Speech

The Checkers Speech In order to provide a sound justification for analyzing this rhetorical artifact, it is necessary to know the general situation from which this artifact emerged. The Checkers speech qualifies as one of the most successful rhetorical exercises in American history. Nixon’s focus of the speech was on a combination of things. The main emphases were on restoring his image with the American people due to the allegations of accepting illegal campaign funds, decreasing the separation…

Words 662 - Pages 3

Banking System Team Paper

Banking System Team Short Paper Shemida Turner, Virginia Perales, Timothy Fields, and Rodney Brown Fin/366 March 2, 2015 Daniel Parlagreco Banking System Team Short Paper The banking crisis was in the forefront when President Roosevelt took office. The faith in the banking system for Americans was all but gone, and he had to get to work to restore it and quickly. Americans were panicked and because of their actions banks were devastated when they began removing their funds from the U.S. banks.…

Words 533 - Pages 3