a. Construct an argument justifying research costs being expensed, rather than capitalised and recorded as assets on the balance sheet.
b. List the factors to be considered in determining the probability of a development project generating future economic benefits.
c. Imagine that development costs were capitalised, but it subsequently became apparent that the project would not generate future economic benefits. Report on how to account for this.
d. Access the most recent financial reports for Microsoft, Dell, IBM, and Google. Compare the dollar amount of research and development expenditure for these companies with that of Apple. Analyse the percentage of net sales that this expenditure represents.