Comment by aarondf

3 years ago

Should go into COGS, yes. Unfortunately, that is now called "tax evasion."

Yes, it's tax evasion because the value delivered by those engineers is realized over multiple years? Which is why this old amortization rule is coming back into effect?

EDIT: Just my final reply - this law has nothing to do with COGS. I'm saying R&D is usually a category with multi-year amortization, it's only recently that an exception was made for political reasons.

You are arguing that R&D expense should always be expensed in year, which I assume is a product of not having seen what the normal world was like.

This isn't even a new law fwiw, it's not extending the exception to the existing law.

  • You're missing the point entirely.

    You said:

    > If the developers worked on this years revenue, they should go into COGS,

    That's no longer legal.