search query: @freeterm Accounting information / total: 4
reference: 2 / 4
| Author: | Healy, P.M. Myers, S.C. Howe, C.D. |
| Title: | R&D accounting and the tradeoff between relevance and objectivity |
| Journal: | Journal of Accounting Research
2002 : JUN, VOL. 40:3, p. 677-710 |
| Index terms: | Pharmaceutical industry R&D accounting |
| Freeterms: | Accounting information |
| Language: | eng |
| Abstract: | A simulation model is used for a pharmaceutical R&D program to examine the tradeoff between objectivity and relevance of accounting information under various methods of R&D reporting. A simple capitalization rule, similar to the successful-efforts method of capitalizing oil and gas exploration costs, provides a stronger relation between accounting information and economic values than immediate expensing of R&D outlays or capitalizing the full cost of outlays. |
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