毕业论文外文翻译-研发费用资本化和盈余管理：意大利上市公司为例.doc

Capitalization of RD Costs and Earnings Management：Evidence from Italian Listed Companies ABSTRACT: The capitalization of research and development (RD) costs is a controversial accounting issue because of the contention that such capitalization is motivated by incentives to manipulate earnings. Based on a sample of Italian listed companies, this study examines whether companies decisions to capitalize RD costs are affected by earnings-management motivations. Italy provides a natural context for testing our hypothesized relationships because Italian GAAP allows for the capitalization of RD costs. Using a Tobit regression model to test our hypotheses, we show that companies tend to use cost capitalization for earnings-smoothing purposes. The hypothesis that firms capitalize RD costs to reduce the risk of violating debt covenants is not supported. KEY WORDS: Earnings management, Cost capitalization, RD accounting, Earnings smoothing, Debt covenants, Italian companies 1 Introduction In the current era of globalization, a highly relevant issue facing regulators, academics, and practitioners is the determination of an appropriate accounting treatment for research and development (RD) costs. International Accounting Standards discuss accounting for RD costs in IAS No. 38 “Intangible Assets” (IASB, 2004;?IASB, 2004). Paragraph 54 of this standard states that no intangible asset arising from research (or from the research phase of an internal project) shall be recognized as an asset; and that research expenses shall be expensed in the income statement when they are incurred. Concerning development costs, paragraph 57 states that an intangible asset arising from development (or from the development phase of an internal project) shall be recognized if, and only if, an entity can demonstrate all of the following: (a) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (b) its intention to complete the intangible asset and u