Will a New Accounting Change Cut Acquisition Values?
Executive Summary
Amidst the wave of patent expirations, pennies per share are now a big deal in Pharma-companies are looking to cut marketing and hold R&D more or less flat. And thus the accounting issues that determine what gets expensed and what gets capitalized have grown in importance. That's why a new FASB rule change on expensing of purchased R&D is causing concern: suddenly R&D will look like it's getting more expensive.