How are research and development costs treated for financial reporting and for economic value added (EVA) calculations? $\begin{array}{llcc}
\underline{\text { Financial Reporting}}&\quad\quad \underline{\text { EVA} }
\end{array}$

a.$\begin{array}{llcc}
\text { Capitalised } & \quad\quad\quad \text { Capitalised} \
\end{array}$

b. $\begin{array}{ll}
\text { Expensed } & \quad\quad\quad\quad\text { Expensed }
\end{array}$

c.$\begin{array}{ll}
\text { Capitalised } & \quad\quad\quad\text { Expensed }
\end{array}$

d.$\begin{array}{ll}
\text { Expensed } & \quad\quad\quad\text { Capitalised }
\end{array}$

A) Expensed/Expensed
B) Capitalised/Expensed
C) Capitalised/Capitalised
D) Expensed/Capitalised

Question

How are research and development costs treated for financial reporting and for economic value added (EVA) calculations? $\begin{array}{llcc}
\underline{\text { Financial Reporting}}&\quad\quad \underline{\text { EVA} }
\end{array}$

a.$\begin{array}{llcc}
  \text { Capitalised } &  \quad\quad\quad \text {  Capitalised} \
\end{array}$

b. $\begin{array}{ll}
\text { Expensed } & \quad\quad\quad\quad\text { Expensed } 
\end{array}$

c.$\begin{array}{ll}
\text { Capitalised } & \quad\quad\quad\text { Expensed }
\end{array}$

d.$\begin{array}{ll}
\text { Expensed } & \quad\quad\quad\text { Capitalised }
\end{array}$

A) Expensed/Expensed
B) Capitalised/Expensed
C) Capitalised/Capitalised
D) Expensed/Capitalised

Quizplus · Accepted Answer

For financial reporting, research and development costs are typically expensed as incurred. However, for EVA calculations, these costs are often capitalized to reflect their long-term value creation potential.

How Are Research and Development Costs Treated for Financial Reporting Financial Reporting‾ EVA‾\begin{array}{llcc}\underline{\text { Financial Reporting}}&\quad\quad \underline{\text { EVA} }\end{array} Financial Reporting​​ EVA​​

How Are Research and Development Costs Treated for Financial Reporting $\begin{array}{llcc}\underline{\text { Financial Reporting}}&\quad\quad \underline{\text { EVA} }\end{array}$