| Summary: | 碩士 === 淡江大學 === 會計學系 === 84 === The recent trend of increasing investment in R&D activities in
both the publicand private sector suggests an increasing
pressure of competition in the economic environment. According,
the accounting treatment of R&Dexpenditure, asdictated by SFAS
No.2 deserves special attention. It requires thatall R&D
expenditures be expensed wheb incurred in order to
maintainuniformity of accounting treatment and to enhance
comparability among firms.However, such treatment has been
criticized for ignoring the real economics ofR&D activity--the
probability of future cash flow has been increased,whhich isthe
same as all other assets in hte financial statement. This study
untends to assess the value of corporate R&D expenditure from
the investors perspective by using a market valuation model. The
purpose is toidentify empirical evidence of R&D expenditure as
an important constituent of a firm's value. Since the balance
sheet statement carries assets of economic value,and is the
primary basis to evaluate a firm's value, R&D expenditure should
becapitalized in the balance sheet, if empirical finding shows
rhat it is a determinant of a firm's value. The empriical result
is consisten with this expectation. A further analysis shows
that the economic amortization rate of R&D benefits in Taiwan
ranges from 1%to11%in general. The Above finding implies that
the accountin regulatory authority should consider if the value
ofbalance sheet statement has been unduly distored by dictating
an immediaterecognition of all R&D expenditure, let alone the
economic costs of restating allpast R&D expenitures that have
been expensed, when the investing publicevaluate their corporate
investements.
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