Firms are required to disclose separately total expensed R&D costs;thus,analysts can use these disclosures to reconstruct what asset and amortization amounts would be if GAAP allowed R&D to be capitalized.

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Quizplus · Accepted Answer

This statement is true. Companies are required to disclose their total expensed R&D costs separately, which allows analysts to estimate what the asset and amortization amounts would be if R&D was allowed to be capitalized under GAAP. This is because GAAP currently requires R&D costs to be expensed as incurred rather than capitalized as an asset.

Firms Are Required to Disclose Separately Total Expensed R&D Costs;thus,analysts