How would the us gaap requiring capitalization

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Question - Research and Development Costs

U.S. GAAP requires firms to expense all the internal expenditures immediately for research and development (R&D) costs. As an alternative, U.S. GAAP could require firms to capitalize and then amortize all internal expenditures on R&D that have future potential.

Why have those who have set the standards chosen to disallow the capitalization alternative?

How would the U.S. GAAP requiring capitalization of R&D costs benefit analysts' interests?

Reference no: EM131586561

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