Nearly a decade has passed since IBM purchased Lotus Development Corp. and attracted widespread attention to the potentially large write-offs that were possible on financial statements for purchased in-process research and development.

The scrutiny of IPR&D increased, as did the criticism that many corporations were managing their earnings with excessive IPR&D write-offs. As a result, the Financial Accounting Standards Board, in conjunction with the American Institute of CPAs, formed an IPR&D task force and issued new guidelines in 2001 to govern the practice.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access