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Research Memorandum

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Submitted By cqnina007
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Accounting Regulation and Treatment of Patents
XYZ Research Company Case Study

You have been hired as a consultant for XYZ Research Co. XYZ Research Co. incorporated in 2010. XYZ ‘s business centers on developing new technology for interplanetary exploration. The company has many patents and has historically expensed all of the costs associated with obtaining their patents. The owners of XYZ Labs are unsure whether or not if any or all of its patent costs can be capitalized. They also are unsure if any impairment testing should be done periodically on their patents. You have been asked by the owners to look into these issues and provide the appropriate accounting treatment for patents.

2014
Accounting Regulation and Treatment of Patents
XYZ Research Company Case Study

You have been hired as a consultant for XYZ Research Co. XYZ Research Co. incorporated in 2010. XYZ ‘s business centers on developing new technology for interplanetary exploration. The company has many patents and has historically expensed all of the costs associated with obtaining their patents. The owners of XYZ Labs are unsure whether or not if any or all of its patent costs can be capitalized. They also are unsure if any impairment testing should be done periodically on their patents. You have been asked by the owners to look into these issues and provide the appropriate accounting treatment for patents.

2014

Research Memorandum
To: XYZ Research Company
From: Christine Quiñones
Date: August 26, 2014
Re: Accounting Regulations and Treatment of Patents
Case Studied:
XYZ Research Company was incorporated in 2010. XYZ’s business core relies in the development of new technology for interplanetary exploration. In the development of new technology they rely on the registration of patents. From inception, the patents and all costs associated with them, have been fully expensed.

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