1. Statement 68 establishes standards of financial accounting and reporting for an enterprise that is a party to a research and development arrangement through which it can obtain the results of research and development funded partially or entirely by others. Statement 68 states that an enterprise shall determine the nature of the obligation it incurs when it enters into an arrangement with other parties that fund its research and development. If the enterprise is obligated to repay any of the funds provided by the other parties regardless of the outcome of the research and development, the enterprise shall estimate and recognize that liability. To the extent that the financial risk associated with the research and development has been transferred, because repayment of any of the Copyright © 2010, Financial Accounting Standards Board Not for redistribution Page 1funds provided by the other parties depends solely on the results of the research and development having future economic benefit, the enterprise shall account for its obligation as a contract to perform research and development for others. 2. Transactions have developed in which a sponsor (the “Sponsor”) capitalizes a ne
To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.