Question: Under the current rules of both U.S. GAAP and IFRS, companies must charge research expenditures directly to expense. Some accountants believe that companies should be

Under the current rules of both U.S. and IFRS, companies must charge research expenditures directly to expense. Some accountants believe that companies should be allowed to recognize some such costs as assets. Suppose you were a manager of a research department of a pharmaceutical company. Which method of accounting for research expenditures would be most consistent with the information you use for decision making? Explain.

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