Technology Acquisition Policy

This sample policy helps establish guidelines and set forth the appropriate accounting policies related to the acquisition of technology, equity and other non-marketable investments (including joint ventures), as well as for payments made for non-recurring engineering costs and other in-process research and development.

Some of the guidelines include: all transactions should be reviewed by the corporate controller’s office for an evaluation of the accounting treatment of the acquisition; and any acquisitions of technology or other rights from another company which is $X million or less should be expensed in full to the appropriate division/department/R&D account of the acquiring entity on the contract date.