Should You Expense or Capitalize Your Engineering Costs?

Q: At RealNetworks we always expensed (vs. capitalized) engineering expenses (as does MSFT).  What is your philosophy on this engineering accounting practice. A: (Brad) Subject to approval by the auditors, I always encourage companies I invest in to expense their engineering costs.  Regardless of the accounting treatment, I think it’s a bullshit practice to capitalize […]

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