Investor Glossary-r&dInvestor Glossary-r&dInvestor Glossary-r&dInvestor Glossary-r&dInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

R&D

The HTML to link to this page
 

R&D stands for Research & Development, which is an activity that a company undertakes to develop new products or services, or methods of production. R&D is therefore driven by the profit motive, but accounting treatment of R&D is conceptually problematic. To clarify exactly what R&D is from an accounting perspective, FASB has issued precise definitions of both research and development. In the US, GAAP dictates that R&D expenditures be booked as expenses, rather than capitalized. Treating R&D as an expense is conservative. However, conceptually R&D results may be assets that determine a company's future potential. Some exceptions to R&D accounting rules are made. For example, extraction industries (oil and mining companies) have the option to capitalize and depreciate or amortize certain seemingly R&D expenditures related to their activities, such as drilling and exploration.



Rate this R&D definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: quality assurance, minority interest, command economy, Zero Cost Collar, APR, annual return, Key Rate Duration, average price per share, ex-dividend date, phantom income, risk management, in escrow, EBITDA, diluted share, option premium, cancelled check, covered put, required rate of return, labor relations, VIX, balance sheet, current ratio, LIBOR, real GDP, 401a, debt service coverage, 1031 exchange, margin rate, 144a, liquidity ratio, class C shares, wholly-owned subsidiary, deferred tax, irrevocable trust, 1035 exchange, stock market close, deferred revenue, implied volatility, reverse mortgage, retained earnings, dividends payable, inflation, stock split, open position, limit order, ex-dividend, FICO score, FTSE, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use