Editing Intangible asset (section)

=== Research and development ===
[[Research and development]] (known also as R&D<ref name=":0" />) is considered to be an intangible asset (about 16 percent of all intangible assets in the US),<ref>Bureau of Economic Analysis (2013). ''Preview of the 2013 Comprehensive Revision of the National Income and Product Accounts.'' https://www.bea.gov/scb/pdf/2013/03%20March/0313_nipa_comprehensive_revision_preview.pdf {{Webarchive|url=https://web.archive.org/web/20170702045919/https://www.bea.gov/scb/pdf/2013/03%20March/0313_nipa_comprehensive_revision_preview.pdf |date=2017-07-02 }}</ref> even though most countries treat R&D as current expenses for both legal and tax purposes.<ref name=":0" /> Most countries report some intangibles in their National Income and Product Accounts (NIPA).{{Citation needed|date=August 2020}} The contribution of intangible assets in long-term GDP growth has been recognized by economists.<ref name="federalreserve.gov">[[Carol Corrado|Corrado, Carol]]. Charles Hulten, and Daniel Sichel (2006). ''Intangible Capital and Economic Growth.'' Federal Reserve Board Discussion Paper N. 2006-24. April. http://www.federalreserve.gov/pubs/feds/2006/200624/200624pap.pdf</ref> Also of note, acquired "In-Process Research and Development" (IPR&D) is considered an asset under US GAAP.<ref>{{Cite web|url=https://assets.kpmg/content/dam/kpmg/pdf/2014/01/Defining-Issues-O-1401-04.pdf|title=AICPA Issues Practice Aid on Acquired In-Process Research and Development Assets|work=Defining Issues|publisher=KPMG, LLD|date=January 2014|edition=14-4}}</ref>

IAS 38 requires any project that results in the generation of a resource to the entity be classified into two phases: a research phase, and a development phase.

The classification of research and development expenditure can be highly subjective, and it is important to note that organizations may have ulterior motives in their classification of research and development expenditures.{{citation needed|date=November 2013}}