With the rapid development of China auto industry, the Chinese Government and the auto industry itself have given more and more attention to the upgrading self-R&D capacity of auto products. Ten years later, it is...With the rapid development of China auto industry, the Chinese Government and the auto industry itself have given more and more attention to the upgrading self-R&D capacity of auto products. Ten years later, it is predicted that the national economy and living standard will be improved greatly, and there will be a peak of the procurement展开更多
This study focuses on the decreasing relevance of financial information associated with current financial reporting standards for intangible assets.We summarize and compare three approaches to improving financial repo...This study focuses on the decreasing relevance of financial information associated with current financial reporting standards for intangible assets.We summarize and compare three approaches to improving financial reporting standards for internally generated intangibles—the recognition approach,the fair value approach and the disclosure approach,among which we focus on the recognition approach.We investigate the impact of current International Accounting Standard 38 on the R&D capitalization policies of the high-tech industry,particularly among medical device firms in China.We conclude that the current recognition criteria are so stringent that they disincentivize firms from capitalizing their R&D investments.A large variation exists in capitalization timing within the medical device industry.Accordingly,we propose the milestone approach to revising financial reporting standards for intangible assets.We suggest that determining the capitalization criteria for intangibles based on the R&D cycle and capitalization timing should be moved forward.展开更多
文摘With the rapid development of China auto industry, the Chinese Government and the auto industry itself have given more and more attention to the upgrading self-R&D capacity of auto products. Ten years later, it is predicted that the national economy and living standard will be improved greatly, and there will be a peak of the procurement
文摘This study focuses on the decreasing relevance of financial information associated with current financial reporting standards for intangible assets.We summarize and compare three approaches to improving financial reporting standards for internally generated intangibles—the recognition approach,the fair value approach and the disclosure approach,among which we focus on the recognition approach.We investigate the impact of current International Accounting Standard 38 on the R&D capitalization policies of the high-tech industry,particularly among medical device firms in China.We conclude that the current recognition criteria are so stringent that they disincentivize firms from capitalizing their R&D investments.A large variation exists in capitalization timing within the medical device industry.Accordingly,we propose the milestone approach to revising financial reporting standards for intangible assets.We suggest that determining the capitalization criteria for intangibles based on the R&D cycle and capitalization timing should be moved forward.
