more-arw search

Q&A Forum

Accounting for joint development agreements

Our startup entered into a joint development agreement with a large company. The company will pay milestone payments to cover a portion of our R&D expenses. The R&D costs associated with the project are not tracked separately and are commingled with other development activities. How would you recommend accounting for this project? Historically we recognized milestone payments as revenue without associated COGS. I am wondering if that's the right treatment.

132 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.