Research and development costs which result in a successful product which is patentable are charged to the Patent account.

Question

Quizplus · Accepted Answer

Research and development costs are expensed as incurred according to accounting standards, regardless of whether the outcome is a patentable product. The costs directly associated with securing the patent (legal fees, filing fees, etc.) can be capitalized and amortized over the life of the patent.

Research and Development Costs Which Result in a Successful Product