Patent Application Costs: US GAAP accounting


M

Manhattaner32

Could anyone offer some input on the correct way to account for patent
applications costs (primarily legal) under US GAAP. The company in mind
always has about twenty patent applications in process. Is the correct
method to just capitalize and then wait until the outcome of the patent
application to start either amortizing the cost over the patent life /
write-off due to unsuccessful application? Alternatively, can a company set
a policy whereby they just start amortizing patent applications costs over a
set period as soon as the costs are paid (of course, any amounts spent on
unsuccessful applications would be written off as soon as an unsuccessful
outcome was final). If it is okay to choose the latter methodology, what is
an acceptable/common amortization life?

Any input on trademark applications would also be appreciated.

Matt P
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top