BusinessCompany News£1bn of R&D highlighted by accounting change

£1bn of R&D highlighted by accounting change

Tougher accounting requirement leads to several blue chip companies reporting additional R&D investment, contributing to the windfall sum

An annual survey of UK businesses has uncovered an extra £1bn of Research
and Development investment following the introduction of a new accounting
standard.

The findings were published in the R&D Scoreboard, produced annually by
the Department of Trade and Industry’s (DTI) business, finance and investment
unit.

UK firms raised their budget for research and development by 13% last year
despite a sudden drop in expenditure for foreign-owned companies, the
DTI said. Total spending on
R&D jumped to £19.2bn last year from £17bn in 2004.

However, the increase was distorted by the introduction of a new accounting
rule that insisted on a higher level of disclosure in sectors not traditionally
associated with R&D.

The DTI said six companies had added £1bn of previously unrecorded R&D,
including, £329m spent by Royal
Bank of Scotland
, £245m by the investment bank HSBC, £122m at the insurer
Royal & Sun Alliance, £115m by Tesco, and £102m by the publishing group
Reed Elsevier.

Related Links:

IFRS having huge impact on banks’ balance
sheets
 

More rules await dealmakers

Accounting standard for SMEs poorly
constructed

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor