Market reaction to proposed changes in accounting for purchased research and development in Ramp;D intensive industries. Working paper：（市场反应提出了购买会计的变化研究和开发Ramp;D密集型产业。）.pdfVIP

Forthcoming, Journal of Accounting, Auditing, and Finance Fall 2004 (vol. 19, no. 4) pp. 405-428 # 1 Market Reaction to Proposed Changes in Accounting for Purchased Research and Development in RD-Intensive Industries ANNE CLEM* ARNOLD R. COWAN* CYNTHIA JEFFREY* Many allege that the accounting profession has failed to adapt to funda- mental changes in the business environment because it has not developed timely guidance for reporting intangible assets. Regulatory attention has also focused on the disclosure companies make with respect to intangible assets. Accounting for the value of intangible assets acquired in a merger transaction is a key component of this issue. Specifically, the Securities and Exchange Commission (SEC) alleged that companies routinely overstated the amount allocated to purchased in- process research and development (IPRD) and stated that the SEC would take steps to enforce generally accepted accounting principles (GAAP) to eliminate abuses of GAAP with respect to IPRD. Others alleged that the SEC was creating GAAP, that they were unfairly singling out certain industries, and that they were unfairly generalizing abuses made by a few firms to the actions of many firms. In other words, com- peting hypotheses emerged with the first suggesting that the accounting treatment of IPRD by companies was improper, while the second sug- gests that the SEC was establishing new accounting s