Preferable a paper that describes issues of accounting for R&D costs in technology firms and how managers use non-GAAP to provide a clearer picture of the core business.
f a paper that discusses the issues of accounting for R&D costs in technology firms and how managers use non-GAAP measures to provide a clearer picture of the core business:
Title: "Accounting for Research and Development Costs in Technology Firms: Challenges and Managerial Responses" Authors: John Smith, Jane Doe Journal: Journal of Accounting Research Year: 2020
Abstract: This paper explores the challenges associated with accounting for research and development (R&D) costs in technology firms and examines how managers use non-GAAP measures to provide a clearer picture of the core business. R&D activities play a crucial role in the innovation and growth strategies of technology firms, yet accounting for these costs poses unique challenges due to the uncertain nature of R&D outcomes and the long-term nature of R&D investments. We review the relevant accounting standards and discuss the limitations of existing accounting practices in capturing the value of R&D investments accurately. Drawing on empirical evidence and case studies, we analyze how technology firms navigate these challenges and employ non-GAAP measures such as adjusted earnings, non-GAAP operating income, and non-GAAP measures of profitability to supplement GAAP financial reporting and communicate the underlying performance of the core business to investors and stakeholders. We discuss the implications of using non-GAAP measures for financial reporting transparency, investor decision-making, and regulatory oversight. Our findings shed light on the complexities of accounting for R&D costs in technology firms and highlight the importance of transparent disclosure practices in enhancing the credibility and reliability of financial reporting in the technology sector.
Please note that the paper described above is a hypothetical example created for illustrative purposes. You may need to conduct a search in academic databases such as JSTOR, ScienceDirect, or Google Scholar to find actual papers that address the specific topic of accounting for R&D costs in technology firms and the use of non-GAAP measures by managers.
Additionally, you can explore journals such as The Accounting Review, Journal of Accounting and Economics, and Contemporary Accounting Research for relevant research articles.
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