Here is the synopsis of our sample research paper on Summary: Financial Accounting Standards Bulletin No. 2. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
Summarizes Financial Accounting Standards Bulletin 2, R&D, requirements for the accounting student. Bibliography lists 1 reference.
Page Count:
3 pages (~225 words per page)
File: JV57_JVfasb2.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
and Development Costs. While the original FASB remains from October 1974, this has been modified slightly by FASB 141 concerning project merges. FASB 2 creates financial accounting and reporting standards
for R&D, with the objective of reducing practices and for the reporting process. It will include R&D costs, disclosures, and activities under contract. FASB 2 does not apply to specific
enterprises involving exploration and mineral rights, though it can relate to development costs of process improvement, exploration, drilling, and extraction. These indirect costs were removed from APB Opinions 17 and
22 concerning intangible assets and disclosure. The R&D financial standards define research and development as a planned search or investigation aimed at
discovering new knowledge, where the knowledge will be useful in developing a new product or service, or complete redesign of an existing product or process, but not upgrades of same.
The accounting covers the process of conceptual formulation, design, and testing of product, prototypes, and operation of pilot plants (Statement, 4). FASB 2 does not cover market research or testing
activities. Typical exclusions are early production phase, troubleshooting production, adaptation of process to client needs, process revamps, legal patents, and normal daily practices. Elements of Costs to Be Identified with
Research and Development Activities The types of costs falling under FASB 2 are materials, equipment, and facilities of the new concept, product
or idea, which can include in-house inventory earmarked for the R&D project, new construction for R&D (not to be confused with ongoing tangible assets). This includes depreciation of equipment or
facilities for R&D. Costs include salaries, wages, contract fees, indirect costs, and intangibles purchased for R&D that cannot be capitalized and amortized under APB Opinion No. 17 (6). Accounting
...