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One of the primary in strive of assets valuation for research and development is to provide data on how to recognize long lived assets and distinguish between the two different types, tangible between the two different types, tangible and intangible and to control to use for internal control over research and development cost, those are of interest to various groups e.g. government sector, private sector e.t.c.

          Chapter one and two contains the introductory and literature review relevant to the research while chapter three is the conclusion and also the definition of terms used by the researcher in the research work.



The essence of this topic is to trace the need of assets for research in the achievenment of development

          In most organization and institution there is research and development units. This is due to the emphasis laid on technology growth by federal government. The research carried out by these unit’s vary from one institution to another this may fall under industrial research agricultural research scientific research food research, market research etc.

          These type of research may come under what standard statement of accounting practice grouped as the main basic types of research. Due to these research which are being carried out by different organization a lot of benefit has accrued to have a conventional method for reporting research and development expenditures.

          The first standard on accounting treatment of research and development expenditure it known as statement of financial standard twelve (DFS)12 was issued in USA in 197A.

          In January 1985 the accounting standard committee also published exposure draft 12 (ED)12 accounting for research and development expenditure in (GD)1A expenditure on pure and applied research was considerated to be part of continuing operation which required to maintain a company business and its competitive position. These two standard DSF 12 and ED1A required expenditure whether pure or applied should be accounting with comparative minor exception. The standard did recognize that a case could be made for capitalizing development expenditure, but it concluded that uncertainties were too great. The exposure draft ended in April 1885 but a last later in 1986 a revised expenditure draft came into being that development expenditure could be matched clearly to future benefit which were reasonably certain.

          In December 1987 stadard statement of accounting practice appeared essentially the same as ED1A but with some important different of which one instead of requiring companines to compulsory before the expensing of certain development expenditure it allowed them on option via.


In recent years government has participated actively in caring out research projects. This is in order to realized its objective of making the country self sufficient and to increase the technological growth of the nation.

          Considering these research range from scientific and material research e.t.c. the most current ones are the production of palm kernel, cracking madding garri pealing frying machines, and extraction of Soya beans milk.

          Another problem to time topic is to identify the prudent procedures for fund allocation to research and development institution in carrying out such research.

          Furthermore the problem of that research work show’s the assets that constitute plant property, equipment of the institute that carrying such property and equipment of the institute carrying out the research.

          Research institution are sometimes over loaded with a lot of financial burden and such are confused on which of the hand development cost.

          Accounting treatment of research and development cost is also too controversies thereby having the problem of giving the general accepted standard in order to alleviating such problem.


The study is intended in order to find the following

vHow it recognizes long tired assets and distinguishes between the two types of asset which know as tangible and intangible assets.


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One of the primary in strive of assets valuation for research and development is to provide data on how to recognize long lived assets and distinguish between the two different types, tangible between the two different types, tangible and intangible and to control to use for internal control over research and development cost, those are of interest to various groups e.g. government sector, private sector e.t.c... accounting project topics


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