Course info

This course provides a clear overview of accounting for research and development activities under ASC 730. It starts by covering the fundamental concepts of R&D, including what costs qualify, recognition rules, and disclosure requirements, while addressing the uncertainties that come with R&D. The course then moves into arrangements where outside parties fund R&D, explaining how to identify obligations, measure costs, and report these transactions. Throughout, you’ll gain practical insight into the complexities of accounting for R&D and related funding arrangements.

Chapter 1 - Research & Development - Overview

This chapter covers the basics of R&D under ASC 730-10, focusing on how research and development are defined and treated differently. It reviews what costs qualify as R&D, what exceptions exist, and how those costs should be recognized and disclosed in financial statements. The chapter also highlights the uncertainties involved in R&D activities and the accounting challenges they create.

Chapter 2 - Arrangements Involving Research & Development - Overview

This chapter explains how to account for arrangements where outside parties fund R&D efforts under ASC 730-20. It discusses the scope of these arrangements, how to determine if an entity has a repayment obligation or a service contract, and how to measure and disclose these transactions. The chapter also touches on the different legal and financial structures commonly used in R&D funding.