Converting R&D Expenses

Convert R&D expenses from operating to capital expenses.

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Description
This spreadsheet converts R&D expenses from operating to capital expenses. It makes the appropriate adjustments to operating income, net income, the book value of assets and the book value of equity. (It can also be used to convert other intangible assets, such as human capital, into capital invested.)

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)

This business tool includes
1 Excel Model File, 1 ReadMe

Prof. Aswath Damodaran offers you this business tool for free!

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Further information

The objective of this model is to get the following outputs:

- Amortization table
- Value of Research Asset
- Expenditure on asset in current year
- Amortization of asset for current year

Without capitalizing / With capitalizing
- Operating income
- Operating income after taxes
- Net Income
- Book value of capital
- Return on capital
- Capital expenditures
- Depreciation & Amortization

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