‘G.A.A.P.’ requires that R & D costs and expenditures be expensed in the fiscal year they are incurred.

Many small start up corporations say ‘R&D’ is their ONLY asset, and expensing it immediately, when they are certain of its future value, is foolish, and damages the apparent value of their organization, especially when they are seeking to acquire additional capital and additional funding to continue their research.

Is immediate expensing of R&D costs a good and wise policy for G.A.A.P. or not ? …...

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Discuss / Explain your answer

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