Capitalism 2 and Capitalism Lab Forum

When a company buys technology from my company the projected R&D budget/loss should be less the sale price.

Example: My current R&D is 100 million a year, I just sold 78 million in technology the projected cost of my R&D operations on the firm screen should be reduced by 78 million.

This would be nice to have happen.

yup I agree

I disagree with this suggestion. From an accounting perspective is the current way correct. Capitalism helped me to gain basic knowledge about economics and accounting. In my opinion it does not make sense to reduce realism, especially since the change would not have any influence on gameplay.

Slimp wrote:I disagree with this suggestion. From an accounting perspective is the current way correct. Capitalism helped me to gain basic knowledge about economics and accounting. In my opinion it does not make sense to reduce realism, especially since the change would not have any influence on gameplay.

I disagree from an accounting prospective if my R&D budget is 100 million dollars a year but from these investments we made $80 million dollars from licensing said R&D, that means that the R&D expense is actually $20 million.

It's like you're saying that when retail makes a profit of a dollar it should not take away from their expenses\, however, as a compromise maybe a line-item in Income Statement/Balance Sheet that clearly states R&D sales so that I have a point of reference...from an accounting prospective...would suit me.

From an accounting perspective, accounting standards would require that the $80 million you made by selling your R&D would either go to Revenues or Other Income. The determining factor as to which of the two would be based on your business model.

Assuming that you ran your company with a Company strategy other than Tech, the $80 million would go to Other Income.

I think adding a new line would work best and be accurate 90% of the time anyways.

Arcnor wrote:From an accounting perspective, accounting standards would require that the $80 million you made by selling your R&D would either go to Revenues or Other Income. The determining factor as to which of the two would be based on your business model.

Assuming that you ran your company with a Company strategy other than Tech, the $80 million would go to Other Income.

I think adding a new line would work best and be accurate 90% of the time anyways.

+1