Module I· HGB vs. IFRS — Structural DifferencesIntermediate
Question
How does R&D capitalization differ under HGB versus IFRS?
Answer
Research is expensed. Development may be capitalized if criteria are met, especially under IFRS IAS 38. Capitalization boosts current EBITDA.
Deep diveShow more details
High development capitalization can flatter EBITDA. In DD, compare capitalized development to total R&D cash spend and future amortization burden.