Research and Devlopment Cost
by Karen
(Cypress, TX)
Is research and development cost considered an asset or an expense?
Karen,
It depends on the individual circumstances ... it can be either one.
I haven't dealt with R&D in years but it is my understanding that normally they would be expensed in the period incurred, along with any associated overhead costs.
However, I think if they have a future use component related to another alternative, they get capitalized.
It would be best to check with a CPA on this one.