The use of SSAP13 Accounting for Research and Development to capitalise development costs is increasing but it brings its own problems, according to Edinburgh-based accounts monitor Company Reporting.
SSAP13 is becoming a more popular choice for the capitalisation of developments costs because of its less rigorous criteria compared to FRS10 on good will and intangible assets.
But the monitor also warned the statement leads to companies having to make decisions without the aid of a comprehensive definition of an intangible fixed asset.
City analysts have yet to say whether they agree with the treatment.