Which of the following principles best describes the current method of accounting for research and development costs?
A) Immediate recognition as an expense
B) Systematic and rational allocation
C) Income tax minimization
D) Associating cause and effect

Question

Quizplus · Accepted Answer

Research and development costs are expensed as incurred under most accounting frameworks, including International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) in the United States. This approach reflects the principle of immediate recognition as an expense, due to the uncertainty of future economic benefits from these activities.

Which of the Following Principles Best Describes the Current Method