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Influence of R&D accounting conventions on internal decision‐making of companies
Author(s) -
Ball R.,
Thomas R. E.,
McGrath J.
Publication year - 1991
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.1991.tb01320.x
Subject(s) - convention , accounting , investment (military) , business , asset (computer security) , decision maker , economics , computer science , political science , management science , law , computer security , politics
The convention currently in place (SSAP 13 revised) to account formally for industrial R&D expenditure is that qualifying development expenditure meeting strict viability criteria may be capitalised (treated as an asset) but that all other development and all research must be immediately expensed (written off). This study comprising interviews and postal responses was carried out to investigate the effect this convention has on managerial actions and decisions on R&D investment by companies, particularly by smaller high‐technology ones.