Hi,
Could you please just clarify some doubts I have on R&D expenditure:
1. Any research or development costs expensed to the P&L cannot be reversed even if subsequently the project is profitable right?
2. But how about if a company is acquired? (like in the consol question called "Rod"). Is the company able to capitalise the research & development costs as an intangible on acquisition (provided at the time the company thought it would be profitable)?
Could you please just clarify some doubts I have on R&D expenditure:
1. Any research or development costs expensed to the P&L cannot be reversed even if subsequently the project is profitable right?
2. But how about if a company is acquired? (like in the consol question called "Rod"). Is the company able to capitalise the research & development costs as an intangible on acquisition (provided at the time the company thought it would be profitable)?
