Difference between revisions of "Extraordinary Research and Development"
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Extraordinary Research and Development is expenditure on new product development that goes beyond a specific amount typical to maintain the range of products or services currently offered. For example, 'extraordinary' expenditure may be required to create an entirely new product range due to the availability of new technology or changes in the law. This expenditure would probably be made only once, until the protocols and working practices needed to maintain the new product range are established amongst the workforce. | Extraordinary Research and Development is expenditure on new product development that goes beyond a specific amount typical to maintain the range of products or services currently offered. For example, 'extraordinary' expenditure may be required to create an entirely new product range due to the availability of new technology or changes in the law. This expenditure would probably be made only once, until the protocols and working practices needed to maintain the new product range are established amongst the workforce. | ||
| − | In companies and co-operatives, such expenditure would deplete the money available for dividends and could also depress the share price (in companies). For this reason, expenditure over a set amount must be recognised as an additional investment by existing members by issuing them 'paid up' shares to the value of the investment made. This way, the membership will be compensated for the loss of current dividends by giving them a larger share of future dividend payments of [[ | + | In companies and co-operatives, such expenditure would deplete the money available for dividends and could also depress the share price (in companies). For this reason, expenditure over a set amount must be recognised as an additional investment by existing members by issuing them 'paid up' shares to the value of the investment made. This way, the membership will be compensated for the loss of current dividends by giving them a larger share of future dividend payments and issues of [[Member Shares]]. |
Return to [[Main Page]]. | Return to [[Main Page]]. | ||
Revision as of 06:42, 30 December 2017
Extraordinary Research and Development is expenditure on new product development that goes beyond a specific amount typical to maintain the range of products or services currently offered. For example, 'extraordinary' expenditure may be required to create an entirely new product range due to the availability of new technology or changes in the law. This expenditure would probably be made only once, until the protocols and working practices needed to maintain the new product range are established amongst the workforce.
In companies and co-operatives, such expenditure would deplete the money available for dividends and could also depress the share price (in companies). For this reason, expenditure over a set amount must be recognised as an additional investment by existing members by issuing them 'paid up' shares to the value of the investment made. This way, the membership will be compensated for the loss of current dividends by giving them a larger share of future dividend payments and issues of Member Shares.
Return to Main Page.
