Acccountant Executive
... with clients. The role of management is to guide the organization toward goal accomplishment. In the process of reaching the established goals, management must work with and through people and organizational resources. This requires effective planning, organizing, leading, and controlling of these resources. Accounting for Research and Development in Ruritania The objective of this report is to prescribe a conceptual basis for Research and Development costs in Ruritania. After having exposed the main problems raised by the accounting of R&D, we will examine those issues in the light of appropriate accounting concepts, and then express our recommendations for the RASB. I) Problems relating to accounting for Research and Development: a) A fundamental problem of definition: Some accounting standards such as IAS 9 tend to define R&D by distinguishing Research and Development, and provide a list of included and excluded R&D activities. Other standards, such as the SSAP13, distinguish Pure Research from Applied Research and Development with an industry-specific orientation. This difference points to the fact that there is no universal definition for “Research” and “Development”. ... This point stresses the importance to define clearly “Research” and “Development” within the RASB standards. ... At its development stage, an R&D project is more advanced and the chances of success appear to be more predictable, as well as the potential future profits, than during the stages of Applied Research and Pure Research. This lack of relation between R&D and future economic benefits is at the core of the primary problem concerning R&D accounting. ... This method corresponds to decision-making accounting, since it is consistent with decision making models such as the NPV value decision model. ... This question of recognition of R&D costs lies at the heart of R&D accounting. ... d) The non-harmonization of general R&D accounting practices: Concerning...