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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.

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