How should Focus company record expenditures for research and development costs according to US.GAAP?

Question

Quizplus · Accepted Answer

According to US GAAP, research and development costs should be expensed as incurred. Capitalization and depreciation are not allowed for such costs. Amortization over a period of time is also not allowed under US GAAP. Therefore, the best option for Focus company is to expense research and development costs as incurred.

How Should Focus Company Record Expenditures for Research and Development