X hits on this document

PDF document

u.S.Securities and Exchange Commission - page 19 / 22

43 views

0 shares

0 downloads

0 comments

19 / 22

SEC or FASS has adopted a particular position on an accounting issue

does not mean that every other view on that issue is defective or

indefensible or would, if adopted, result in harm to investors. In the

process of working towards international consensus on the lASe

standards, the U.S. needs to make clear that it is genuinely willing to

consider the points of view of other countries and to accept them if

reasonable.

For example, one difference between U.S. and lASe standards on

which reasonable persons might disagree is accounting for development

costs. The relevant U.S. standard, of course, requires U.S. companies

to charge all development costs to expense when incurred. 29/ In its

deliberations on this issue, FASS considered allowing some

development costs to be deferred, and this position was strongly

supported by many knowledgeable accountants. 30/ An asset, after all,

can be viewed as nothing other than a cost that will benefit a company

in the future, and companies can certainly benefit from their

development efforts. However, FASS ultimately decided that it was not

possible to establish a development cost standard that could be applied

objectively and comparably by all companies. FASS therefore simply

29/

FASS, Statement of Financial Accounting Standards No.2:

Accounting

for

Research and

Development Costs 1J12(1974).

~/

See ida at ~~53-54.

18

Document info
Document views43
Page views43
Page last viewedSat Dec 03 03:03:57 UTC 2016
Pages22
Paragraphs1030
Words4427

Comments