Research and Development Accounting - What You Need to Know About ASC 730
Author: Kelen Camehl
| CPE Credit: |
2 hours for CPAs |
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
