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.
Publication Date: April 2026
Topics Covered
- Uncertainty Considerations
- Authoritative Guidance
- Research & Development Defined
- Research
- Development
- Scope & Scope Exceptions
- Recognition Requirements
- Disclosure Requirements
- ASC 720-20 Scope
- Recognition
- Subsequent Measurement
Learning Objectives
- Identify the key components that define research and development activities
- Distinguish between research and development as separate concepts
- Recognize the scope and scope exceptions applicable to R&D under ASC 730-10
- Determine the recognition requirements for R&D costs
- List the disclosure requirements related to R&D in financial statements
- Identify the scope of ASC 730-20 for R&D arrangements
- Differentiate between obligations to repay funds and obligations to perform contractual services under R&D arrangements
- Recognize how subsequent measurement of R&D arrangements is handled
- Determine required disclosures related to research and development arrangements
- Select key factors affecting accounting treatment in R&D funding arrangements
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
Basic understanding of ASC 730
Advance Preparation
None
Instructor
Kelen Camehl
Kelen is a recognized author and reviewer of CPE courses and has authored over 145 courses (350 CPE credit hours) covering a range of accounting, auditing, financial reporting, regulatory, and ethics topics. His courses are available for purchase from many online CPE providers including the AICPA. Kelen remained involved in CPA exam content development for nearly 10 years and authored more than a thousand multiple choice questions for various sections of the CPA exam. He also serves as an Editorial Advisor for the AICPA’s "Journal of Accountancy".
Kelen has nearly 20 years of progressive finance and accounting experience. He currently serves as an Accounting Policy Advisor with HP. Prior to HP, he served in multiple accounting roles in the oil & gas industry with ConocoPhillips including technical accounting policy, SOX compliance, and internal audit. He also gained public accounting experience with PricewaterhouseCoopers, working with various clients in the energy, electric, power, gas, and utility sectors.