As we learn in chapter 9, GAAP requires that research and
development (R&D) costs be treated as period expenses,
prohibiting their capitalization. Because of this, when a company
has an internally developed intangible asset, it does not show any
value for it on its balance sheet. Only purchased intangibles,
having a more identifiable value (cost) are carried as assets on
balance sheets.
Many in the accounting field and in business in general believe
that this rule should be changed. These...