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The application of AC 122 to research and development, in the pharmaceutical industry : conceptual issues and implementation concerns : a case study
Includes bibliographical references.
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| Other Authors: | |
| Format: | Thesis |
| Language: | English |
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College of Accounting
2016
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| _version_ | 1867613586244763648 |
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| access_status_str | Open Access |
| author | de Waal, Margaret Suzanne |
| author2 | Everingham, Geoff |
| author_browse | Everingham, Geoff de Waal, Margaret Suzanne |
| author_facet | Everingham, Geoff de Waal, Margaret Suzanne |
| author_sort | de Waal, Margaret Suzanne |
| collection | Thesis |
| description | Includes bibliographical references. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/17534 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:38:30.173Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2016 |
| publishDateRange | 2016 |
| publishDateSort | 2016 |
| publisher | College of Accounting |
| publisherStr | College of Accounting |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/17534 The application of AC 122 to research and development, in the pharmaceutical industry : conceptual issues and implementation concerns : a case study de Waal, Margaret Suzanne Everingham, Geoff Accounting Pharmaceutical Industry Research and Development costs Includes bibliographical references. Research and development spending has become increasingly important over the last two decades. Despite this, the South African business community has largely ignored the South African accounting standard for research and development costs, AC 122, issued in 1994. A review of the comments received from a number of respondents to the exposure draft to AC 122 and it's international equivalent, lAS 9 (revised), suggests that the implementation difficulties associated with AC 122 are the major reason for the apparent lack of acceptance of AC 122 by the local accounting profession and industry. This research attempts to identify these implementation concerns, specifically in relation to the pharmaceutical industry, so as to provide guidance for implementing AC 122 in this industry. From an analysis performed of AC 122 and the responses of a number of members of the local and global business community, three main implementation problems associated with AC 122 were identified. These are (a) the appropriate allocation of R & D costs between research costs and development costs, (b) implementing the requirement to capitalise development costs, and (c) determining the most appropriate method and time period for amortising a development asset. The identification of these problems also highlighted that AC 122 is deficient in implementation guidance and requires the exercise of an unusually high level of subjective judgement. This study illustrates that it is possible to develop guidelines for overcoming the problems identified in the pharmaceutical industry. This research also provides an approach for similar research in other R & D intensive industries. However, the time and cost of performing such an exercise is likely to limit the industry approach to accounting for R & D costs. The research led to the conclusion that the accounting standard for research and development costs in South Africa is difficult to apply consistently in practice, and requires amendment if it is to obtain the support of the accountancy profession and commerce. 2016-03-07T04:13:12Z 2016-03-07T04:13:12Z 1998 Master Thesis Masters MCom http://hdl.handle.net/11427/17534 eng application/pdf College of Accounting Faculty of Commerce University of Cape Town |
| spellingShingle | Accounting Pharmaceutical Industry Research and Development costs de Waal, Margaret Suzanne The application of AC 122 to research and development, in the pharmaceutical industry : conceptual issues and implementation concerns : a case study |
| thesis_degree_str | Master's |
| title | The application of AC 122 to research and development, in the pharmaceutical industry : conceptual issues and implementation concerns : a case study |
| title_full | The application of AC 122 to research and development, in the pharmaceutical industry : conceptual issues and implementation concerns : a case study |
| title_fullStr | The application of AC 122 to research and development, in the pharmaceutical industry : conceptual issues and implementation concerns : a case study |
| title_full_unstemmed | The application of AC 122 to research and development, in the pharmaceutical industry : conceptual issues and implementation concerns : a case study |
| title_short | The application of AC 122 to research and development, in the pharmaceutical industry : conceptual issues and implementation concerns : a case study |
| title_sort | application of ac 122 to research and development in the pharmaceutical industry conceptual issues and implementation concerns a case study |
| topic | Accounting Pharmaceutical Industry Research and Development costs |
| url | http://hdl.handle.net/11427/17534 |
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