Background Information
Statement 141(R), issued in December 2007, resulted in different GAAP requirements for research and development assets acquired in a business combination from those acquired in other types of transactions. That Statement requires an acquirer to recognize all tangible and intangible research and development assets acquired in a business combination. However, Statement 2, which addresses the accounting for research and development assets acquired by means other than a business combination, requires an entity to recognize a research and development asset only if it has an alternative future use.
During its deliberations on Statement 141(R), the Board considered extending the recognition provisions to include research and development assets acquired outside of a business combination, but ultimately decided not to do so. The Board did not want to spend additional time deliberating the related issues because this would have unduly delayed the issuance of Statement 141(R). At the October 18, 2006 Board meeting, the Board decided to add this separate project to its agenda to address the inconsistencies.
