Other Form of Name
Nix, Paul Edward, 1936-; Nix, David E.
Publication Date
1992
Abstract
This study reviews the literature and the practice of accounting for research and development (R&D) costs from the first reference in 1917 to the current treatment. The conceptual treatment of R&D is compared to current financial accounting rules and explanation of the evolution of the current rules is presented. The economic and social consequences of the current rules which require R&D costs to be expressed are examined. The paper explores possible alternative treatment of R&D costs. As a contrast to U.S. practice, the accounting treatment of R&D costs in other countries is discussed. Given the findings of this paper, a strong case can be made for changing the way that R&D costs are accounted for in the United States.
Recommended Citation
Nix, Paul Edward and Nix, David E.
(1992)
"Historical review of the accounting treatment of research and development costs,"
Accounting Historians Journal: Vol. 19
:
Iss.
1
, Article 3.
Available at:
https://egrove.olemiss.edu/aah_journal/vol19/iss1/3