R&D in Textile Companies: Measurement and Reporting
Liuc Papers, Vol. 9, No. 119, 2003
40 Pages Posted: 14 Sep 2006
Costs for producing a new collection represent a key factor in determining the competitiveness of a textile company. Moreover, the new collection process is considered crucial not only for its costs but for its outcome as well in order to get an accurate overview of companies' profitability in this sector. For textile companies these expenses would fall into the category of R&D costs. However, there is no universally adopted method to identify and to measure the costs of this process, nor to evaluate the usefulness of R&D investments. With this situation thus in mind, the aim of this paper is twofold: to provide useful information to improve textile company disclosure and to get meaningful statistics when indicators such as expenditure on R&D are used; to identify a set of indicators in order to evaluate the efficiency and effectiveness of the new collection process. Hence this information would give a strategic meaning to the accounting data of expenditure on R&D.
Keywords: Textile firms, SME, R&D, intangibles, accounting
JEL Classification: M41
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