Includes bibliographical references (p. 169-170) and index.
|Statement||prepared by the IPR&D Task Force.|
|Series||AICPA practice aid series|
|Contributions||American Institute of Certified Public Accountants. IPR&D Task Force.|
|LC Classifications||Hf5681.A8 A87 2001|
|The Physical Object|
|Pagination||x, 178 p. :|
|Number of Pages||178|
|LC Control Number||2002512624|
This chapter sets forth what the IPR&D Task Force (task force) believes are best practices in defining assets acquired in a business combination that are to be used in research and development (R&D) activities, including specific in‐process R&D (IPR&D) projects, for purposes of applying Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) , Business Combinations. The task force notes that business combinations . process research and development acquired in a business combination generally will satisfy the definition of an asset ”3 As such, an acquirer is required to recognize all tangible and intangible assets acquired in a business combination that are to be used in research and development (R&D). As a result, assets used in R&D activities acquired in a business combination and those acquired in an asset acquisition are still subject to different accounting treatment. Assets Acquired to Be Used in Research and Development Activities - Accounting and Valuation Guide. This new guide provides guidance and illustrations regarding the initial and subsequent accounting for, valuation of, and disclosures related to acquired intangible assets used in research and development activities (IPR&D assets).
Founded in , the American Institute of Certified Public Accountants (AICPA) represents the CPA and accounting profession nationally and globally regarding rule-making and standard-setting, and serves as an advocate before legislative bodies, public interest groups and other professional organizations. The AICPA develops standards for audits of private companies . IPR&D Assets Acquired in Business Combinations. Under current accounting guidance, an entity does not expense assets acquired in business combinations to be used in research and development (R&D) activities that do not have an alternative future use File Size: KB. The AICPA recently issued the Accounting and Valuation Guide, Assets Acquired to be Used in Research and Development Activities (the Guide), which replaces the AICPA’s IPR&D Practice Aid issued in , Assets Acquired in a Business Combination to be Used in Research and Development Activities: A Focus on Software, Electronic Devices & Pharmaceutical Industries. What is the appropriate accounting treatment for the value assigned to in-process research and development acquired in a business combination? A. Capitalize as an asset. B. Expense if there is no alternative use for the assets used in the research and development and technological feasibility has yet to be reached. C. Expense upon acquisition.
Get this from a library! Assets acquired in a business combination to be used in research and development activities: a focus on software, electronic devices, and pharmaceutical industries. [American Institute of Certified Public Accountants. IPR & D Task Force.;]. Accounting Standards Update (ASU) No. , “Business Combinations (Topic ): Clarifying the Definition of a Business,” provides a screening test (“screen”) which assists entities with evaluating when the transfer of an integrated set of assets and activities (“set”) constitutes a business or asset acquisition. In December , the American Institute of Certified Public Accountants (“AICPA”) finalized the Accounting and Valuation Guide, Assets Acquired to Be Used in Research and Development Activities (the “Guide”), concluding a nearly five-year effort to update the AICPA’s Practice Aid, Assets Acquired in a Business Combination to Be Used in Research . The chief variance from this guidance is in a business combination, where the acquirer can recognize the fair value of research and development assets. The basic rule of charging all research and development expenditures to expense is not entirely pervasive, since there are exceptions, as noted below: Assets.