Comment by svara
6 months ago
Is this true even if you don't capitalize the immaterial IP asset generated by the R&D salaries on the balance sheet? Is that required in the US?
Otherwise I'm quite amazed that salaries can be carried forward as future expenses.
This is what the Sec 174 change said: it says that you do have to capitalize it.
Elsewhere in the world (under IFRS accounting rules) capitalization of R&D costs has been a firm requirement for a while. The US has been somewhat unique in allowing them to be expensed instead, until recently.
Taxes are calculated according to tax accounting rules, not IFRS, though?
I know of at least two Western European countries where you don't have to do that. Don't worry, we pay enough taxes either way ;)
Yeah, seems I was wrong about that. Apparently most IFRS countries allow expensing R&D for tax purposes, regardless of accounting. Many even have an R&D superdeduction nowadays.
Sorry for the noise :(
I was confused and has to double check. In Australia you can deduct them https://www.ato.gov.au/businesses-and-organisations/income-d...
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Some countries have uniform accounting where the tax accounting rules closely follow IFRS.