Capitalization of In-Process Research and Development under SFAS 141R and Information Asymmetry

• 成果类型: Article
• 署名作者: Chung, Hyeesoo (Sally) H.; Hillegeist, Stephen A.; Park, You-Il (Chris); Wynn, Jinyoung P.
• 署名单位: California State University System; California State University Long Beach; Arizona State University; Arizona State University-Tempe; Nanyang Technological University; University of Hawaii System; University of Hawaii Manoa; University of Louisiana System; Louisiana Technical University
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12508
• 发表日期: 2019
• 页码: 2379-2407
• 关键词: VALUE-RELEVANCE; FUTURE; Intangibles; COSTS

摘要

This study examines the effect of capitalizing acquired in-process research and development (IPR&D) on information asymmetry under Statement of Financial Accounting Standards No. 141 (R) (SFAS 141R). SFAS 141R requires acquirers to fully recognize IPR&D at fair value as an indefinite-lived intangible asset until completion or discontinuation of the project. Prior research suggests IPR&D capitalization will result in an improvement in the information environment. In contrast, we find no evidence that capitalizing IPR&D improved the information environment for IPR&D acquirers. Instead, most of our results suggest no significant change in information asymmetry for IPR&D acquirers during the post-SFAS 141R period, relative to the concurrent changes for non-IPR&D acquirers. In cases in which the results suggest a statistically significant increase, the economic magnitudes are relatively small. In addition, we find no evidence that IPR&D acquirers engaged in increased classification shifting between IPR&D and goodwill during the post-SFAS 141R period, as critics of capitalization had feared.