Title: Segmental identification of research and development costs in investment decisions by the Greek banking sector

Authors: Panayiotis Tahinakis, Dimitrios Ginoglou, Nikolaos Protogeros

Addresses: Department of Accounting and Finance, University of Macedonia, 156 Egnatia Str., 540 06 Thessaloniki, Greece. ' Department of Accounting and Finance, University of Macedonia, 156 Egnatia Str., 540 06 Thessaloniki, Greece. ' Department of Accounting and Finance, University of Macedonia, 156 Egnatia Str., 540 06 Thessaloniki, Greece

Abstract: The growth and expansion of firms into foreign markets have resulted in the aggregation of financial information that includes non-homogeneous elements. This paper seeks to investigate the difficulties of reporting on segments of a business. Emphasis will be laid on analysing the existing accounting recognition and measurement difficulties deriving from reporting research and development (R&D) expenditures in the light of investment decisions by the Greek banking sector. In conclusion, this study indicates that there are accounting and auditing problems of defined, measured and disclosed R&D to users of financial statements. Despite these difficulties, the importance of R&D expenditures will increase, as the capital market grows and there is a constant need to supply reliable accounting information.

Keywords: Greece; banking sector; investment decisions; financial services; segmental identification; research and development; R&D costs; R&D expenditure; accounting.

DOI: 10.1504/IJFSM.2006.009633

International Journal of Financial Services Management, 2006 Vol.1 No.2/3, pp.308 - 321

Available online: 03 May 2006 *

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