Firms are required to disclose separately total expensed R&D costs;thus,analysts can use these disclosures to reconstruct what asset and amortization amounts would be if GAAP allowed R&D to be capitalized.

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Edward Kurowski · Accepted Answer

Final Answer : True, Explanation :  This statement is true. Companies are required to disclose their total expensed R&D costs separately, which allows analysts to estimate what the asset and amortization amounts would be if R&D was allowed to be capitalized under GAAP. This is because GAAP currently requires R&D costs to be expensed as incurred rather than capitalized as an asset.

Firms are required to disclose separately total expensed R&D costs;thus,analysts can use these disclosures to reconstruct what asset and amortization amounts would be if GAAP allowed R&D to be capitalized.

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