Accounting For Intellectual Capital

Abstract

The authors review accounting standards for recording intellectual capital (research and development) using Amazon.com as a model. An international perspective of the United Kingdom, the Japanese; and the United States indicates similarities and differences among these countries and the International Accounting Standards. The authors discuss the advantages and disadvantages of expensing versus capitalizing these expenditures with specific emphasis on e-tailing. The impact of dual treatment is equally confusing to external as well as internal users of this financial information.