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.
Reviews Add a review
No reviews yet

More From Corporate Finance Institute®

Browse our top rated business templates. See All
REIT Financial Model Template
6,318
10
This REIT financial model template acts as a guideline for modeling a real estate investment trust (REIT). This model will…
Energy Industry Comps Template Energy Industry Comps Template
6,149
445
This energy industry comps template provides a guideline and example of what a comparables universe would look like for a…
Financial Institution Dividend Discount Model
7,241
578
The financial institution dividend discount model uses future dividends to find the implied share price. This model is based on…
Loan Payment Calculator
6,597
224
The loan payment calculator allows users to determine the principal and interest payment each month until the full balance of…
DDM - Excel Dividend Discount Model Template
9,291
1118
The dividend discount model template allows investors to value a company base on future dividend payments. This is based on…
Non-directional trading strategy template Non-directional Trading Strategies Template
6,088
39
The non-directional trading strategies template allow users to determine the profit when buying options. This template focuses on non-directional strategies…
See All