Misconception · MIS:all-r-and-d-costs-are-capitalized

Mistaken idea “All R&D costs are capitalized because they seek future benefits”

Mistaken reasoning: This mistake turns project purpose into a recognition rule and ignores ordinary US GAAP R&D expense treatment and scope branches.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

Future benefit motivates the activity but does not replace Topic 730. Sort the ledger by activity and scope, then isolate the narrow alternative-use and acquisition/software branches before calculating expense.

Where to watch

When this mistake may appear

A promising laboratory project includes payroll, materials, equipment, and legal costs.

Check your work

Your work may contain this mistake if:

Every project-ledger amount is debited to an intangible asset.