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#38 Adam Seessel: Where the Money Is
Investing by the Books
What's the Difference Between Research and Development?
When you build a factory, you get in general 20 to 25 years to depreciate that factory. So if you as a tech company spend a hundred million dollars in research and development, every year you have to recognize a 100 million dollars of expense in Research and Development. And related to that, you know, selling expenses for a company are also expense for one year. But the accounting rules say no, no, any research and development expenditure has to be expensed - 97% of all R&D expenditures are expensed in that year. Here in Sweden, and most companies in Europe using IFRS account instead, what is your view on that and how that differs?
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