Where to Find Research and Development Expense in the Financial Statements

This video shows you where to find research and development expense (R&D expense) in a company's financial statements.

Most companies don't have a line item on their income statement that says "research and development expense." This is because research and development expense is usually included in SG&A expense (although some companies include research and development expense in cost of goods sold).

However, both U.S. GAAP (ASC 730) and IFRS (IAS 38) require companies to disclose their total research and development expense.

Thus, if you don't see research and development expense as a line item on the income statement, you can find the total research and development expense in the notes to the financial statements.

If you're looking for in-process research and development (IPR&D) this is an asset that is included in intangible assets on the balance sheet.
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