In Process RandD

PURCHASED IN-PROCESS RESEARCH AND DEVELOPMENT When one company purchases another, it absorbs the acquired firm’s assets and liabilities onto its balance sheet. One part of the acquired company that belongs to neither area is in-process research and development. “Acquired in-process research and development (IPR&D) that is written-off represents purchased research and development that has not yet demonstrated technological feasibility and has no alternative future use”(http://usserve.us.kpmg.com/valserv/tech/html/…

…acquisition activity. Companies would stick to developing technology in-house rather than acquiring it. There was also fingerpointing. It was the accounting firms’ fault for not valuing the R&D correctly, some executives claimed. Tech companies were just doing what their auditors and appraisers told them. Behind all these protests lurked the real reason for high-tech’s panic: fear of lower stock prices(…/DOC_?Idoc=2&lastidoc=33&str=IPR%26D&sty=lkw&mlinks=1&uspec=citas_hot=1&cit18/1/99).