SciELO - Scientific Electronic Library Online

vol.57 issue4The constative and performative statements in the administrative discourse for the constructions of profit organizationsMeasurement model for asset specificity and performance variables in supplier networks author indexsubject indexsearch form
Home Pagealphabetic serial listing  

Services on Demand




Related links

  • Have no similar articlesSimilars in SciELO


Contaduría y administración

Print version ISSN 0186-1042


DUARTE ATOCHE, Teresa; PEREZ LOPEZ, José Ángel  and  CAMUNEZ RUIZ, José Antonio. Information about R&D and companies valuation: The case of the automotive industry in the United States of America and United Kingdom. Contad. Adm [online]. 2012, vol.57, n.4, pp.107-136. ISSN 0186-1042.

U.S. GAAP require the full expensing of R & D expenditures. However, International Financial Reporting Standards (IFRS) require capitalization of R & D cost if it meets certain criteria (IAS 38). At the moment, the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) agreed to undertake efforts to reduce or eliminate certain narrow differences between IFRS and U.S. GAAP. In regard to R & D expenditures, the IASB and FASB staff research will continue. This paper aims at examining the relevance and reliability of information about R & D expenditures, trying to estimate the company value in the Stock Market. Our method consists of different specifications of a valuation model, that is, the Ohlson Model (1995). The sample is composed of U.S. and U.K. listed automotive firms over a 10-year period (1995-2004). Our findings indicate that investors consider that current R & D is an expense and that lagged R & D is an asset. Accordingly, the international regulation should follow IASB standards.

Keywords : R & D; International Accounting Standards; Ohlson Model; Market Value.

        · abstract in Spanish     · text in Spanish     · Spanish ( pdf )


Creative Commons License All the contents of this journal, except where otherwise noted, is licensed under a Creative Commons Attribution License