Overview
This R&D Capitalization Template is an useful tool to perform research & development capitalization and amortization calculations on a product.

How does this R&D Capitalization Template Work

Research and development (R&D) expenditures are required to be expensed by every company under the GAAP rules. Expensing R&D often results in a reduction in profits or even losses, as well as a lower return on assets (ROA) or return on invested capital (ROIC). To capitalize on R&D expenditures and value the assets, one should determine the total period of time a product or technology will create value or benefit. Once the amortization life of R&D expenses is identified, the company needs to find out the actual R&D expenses for each of those years and sum those up. Finally, the company can determine the amortization expenses using a straight-line method.
Share
Reviews Add a review
No reviews yet

More From Corporate Finance Institute®

Browse our top rated business templates. See All
restructuring financial model template preview 1 Restructuring Financial Model Template
232
0
This restructuring financial model template is used to demonstrate the financial interactions behind the restructuring process. Adjust this model to…
TMT Financial Model Template Preview TMT Financial Model Template
355
0
This TMT financial model template is used to value technology, media, and telecom firms. This model provides a template to…
bank financial model template preview 1 Bank Financial Model Template
326
0
This bank financial model template is used to value financial institutions group (FIG) companies. This is a comprehensive model that…
Synthetic Call Chart Option Profit/Loss Graph Maker
922
240
This free Option Profit/Loss Graph Maker allows the user to combine up to ten different types of options as well…
Directional Trading Strategies Template Directional Trading Strategies Template
742
0
The directional trading strategies template allow users to determine the profit when buying options. This template focuses on directional strategies…
HELOC Calculator Template Home Equity Line of Credit (HELOC) Calculator
439
106
This home equity line of credit (HELOC) calculator can calculate the maximum amount of loan a homeowner is eligible to…