U.S.GAAP requires firms to expense research and development (R&D) costs in the period incurred.

Name: U.S.GAAP requires firms to expense research and development (R&D) costs in the period incurred.
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Under U.S.GAAP, firms are required to recognize R&D costs as an expense in the period they are incurred. These costs cannot be capitalized and treated as an asset, unless they meet certain criteria for development costs related to the creation of an intangible asset.

USGAAP Requires Firms to Expense Research and Development (R&D) Costs