What would happen to assets and net income if a company capitalized their research and development costs?

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07-11-2017
Business

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What would happen to assets and net income if a company capitalized their research and development costs?

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Kalahira Kalahira · Answer 1 · 2017-11-18T16:33:00+01:00

Kalahira Kalahira

18-11-2017

The assets and net income would increase, and the value of the company would at least be higher on paper. This is because the R&D costs were turned into cash, which would then be considered a net asset to the company.

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