Research and development - audit process, Auditing

Assignment Help:

Research and Development - Audit Process

The past of business is littered along with cases of companies which have collapsed as a convulsion of over indulgence in discover and development on products which have proved entirely unprofitable.  Unhappily most of these could not have been simply seen from the preceding financial statements.  Simply capitalized research of a lot of companies and auditors made little attempt to check out which the values attributed to this asset were realistic.

Research is an essential expense in earning revenue and can excusably be matched against it.  Conversely, when development and research expenditure is incurred here, so there is no telling whenever and whether the associated revenue will materialize.  Such the concept of prudence would dictate which such expenditure is written off as it is incurred.

The authoritative document on development and research is International Accounting Standard Number38 Intangible Assets.

IAS 38 Intangible Assets was concerned in March 2004 and is applied for the accounting to intangible assets obtained in business combinations after then date 31 March 2004, and to each other intangible assets for annual periods beginning on or after then date 31 March 2004.


Related Discussions:- Research and development - audit process

Explain an example relevant to the audit of purchases, QUESTION: (a) T...

QUESTION: (a) The auditor should get relevant and reliable audit evidence sufficient to enable him to draw reasonable conclusions therefrom: (i) What do you understand by

Assignments, Describe the factors which decide the broad area of Scientific...

Describe the factors which decide the broad area of Scientific activity?

How do internal auditors add to the credibility of financial, How do intern...

How do internal auditors add to the credibility of financial statements?

Demonstrate knowledge of the current tax-auditing , 1. Demonstrate knowledg...

1. Demonstrate knowledge of the current tax, auditing and accounting issues that concern governmental and not-for-profit entities 2. Explain the difference between various funds (

Tangible non current assets, Tangible Non Current Assets The verificat...

Tangible Non Current Assets The verification approach is fundamentally similar in each of these.  Extensive disclosure is utilized in most countries and IAS 16 Property Equipm

Process to adopt liabilities, Process to Adopt Liabilities It is signi...

Process to Adopt Liabilities It is significant that the auditor realises which such liabilities can exist and he should obtain reasonable steps to unearth them whether they ex

Statutory Auditing - Newspaper agencies, Provide the data regarding all abo...

Provide the data regarding all about auditing of Newspaper agencies

Discovery of unlawful acts, Discovery of unlawful acts When an auditor ...

Discovery of unlawful acts When an auditor discovers unlawful acts, usually he is not expected to disclose to the police or other authorities unless: The client authorise

Capital commitments - audit process, Capital Commitments - Audit Process ...

Capital Commitments - Audit Process The Companies Act needs capital commitments be disclosed through a way of note to the accounts.  Therefore the auditor must execute suffici

Techniques used during an audit?, What techniques used during an audit? ...

What techniques used during an audit? Ans)  ? Be professional at all times. Avoid being judgmental. ? Follow safety procedures, clean room procedures, and all other needed pr

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd