Accounting treatment for R&D activities in accordance with ifrs and romanian legislation
Authors
Iuliana Oana Mihai
“Dunărea de Jos” University of Galaţi, Romania, Business Administration Department
Camelia Mihalciuc
“Ştefan cel Mare” University of Suceava, Romania, Faculty of Economics and Public Administration
Cosmin Mihai
“Dunărea de Jos” University of Galaţi, Romania, Business Administration Department
Abstract
In this paper, we will consider the accounting treatment of research and development expenses as operating expenses or intangible assets. The treatment of R&D activities has been a subject of particular controversy internationally. While there is general (but not universal) agreement that research does not give rise to intangible values that can be recognized as assets, there still a disagreement as to whether development may do so subject of to certain criteria. IFRS/IAS does not contain any specific regulations for the accounting treatment of R&D activities. Instead, the general regulations relating to reporting intangible assets are to be applied in this case. The ways of reporting intangible assets are dealt with in particular in the following standards: IAS 38 Intangible assets, IFRS 3 Business combinations, IAS 36 Impairment of assets.
