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Accounting for R&D Investments According to IAS 38

And the Conflicting Forces that Shape Financial Accounting: An Empirical Analysis

by Michael Ordosch (Author)
©2012 Thesis XXII, 227 Pages

Summary

The thesis empirically investigates two conflicting views on the accounting treatment of R&D outlays according to IAS 38. Proponents of a capitalization of R&D outlays argue that this accounting policy provides relevant information to investors. In contrast, those opposing such a capitalization state that the resulting asset is too uncertain. The findings demonstrate that the arguments of both supporters and opponents basically remain valid and are therefore to some extent incompatible. However, given this incompatibility a discussion of the empirical findings in context with the arguments brought forward within the political debate surrounding IAS 38 illustrates that IAS 38 eventually pursues a reasonable approach to balance these conflicting views.

Details

Pages
XXII, 227
Year
2012
ISBN (PDF)
9783653022896
ISBN (Hardcover)
9783631622667
DOI
10.3726/978-3-653-02289-6
Language
English
Publication date
2012 (April)
Keywords
research & development Capital-markets research value relevance Ohlson Model Model of Kothari uncertainty
Published
Frankfurt am Main, Berlin, Bern, Bruxelles, New York, Oxford, Wien, 2012. XXII, 227 pp., 20 tables, 12 graphs

Biographical notes

Michael Ordosch (Author)

Michael Ordosch, born 1983 in Günzburg, studied business administration at the University of Augsburg (Diploma) and the University of Dayton, Ohio (MBA). He worked as a research assistant and lecturer at the EBS Business School, Wiesbaden, before he joined a corporate finance consulting firm in November 2011.

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Title: Accounting for R&D Investments According to IAS 38