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New Guidance Illuminates and Contrasts Evaluation Techniques for R&D Performance Measurement

NEWS RELEASE

Contacts:
Mark Carrington
(703) 341.5880
mcarrington@bna.com

Arlington, Va. (May 13, 2009) – Unlike trends in fashion that consumers adopt and discard at the drop of a hat, trends in Research and Development  management can have more significant implications. The current trend to link R&D to corporate strategy poses particular challenges to managers requiring integration of various organizational components with R&D projects that have unique qualities and involve new knowledge.

BNA’s latest analysis, Linking R&D Performance Measurement and Valuation to Corporate Strategy, written by Wayne Bremser and Hemantha Herath, explains and contrasts various principals and techniques for measuring performance of R&D projects and departments.  It summarizes relevant U.S. GAAP and IFRS GAAP standards and provides large-budget R&D managers and financial executives with a new framework of strategic questions to ask before implementing a performance measurement system. 

Portfolio 5312 in BNA’s Accounting Policy & Practice Series includes an R&D Performance Measurement Metric Profile to guide individuals through a metric selection process.  This Portfolio uses multiple approaches—binomial trees, decision theory, and Monte Carlo Simulation.

“This guidance is designed for CFOs, Controllers, and R&D managers charged with implementing performance measurement systems. Unlike modeling in continuous time―which tends to be complex and abstruse―these options are largely intuitive and can be implemented in Microsoft Excel available to many analysts,” says BNA executive editor George Farrah.

Linking R&D Performance Measurement and Valuation to Corporate Strategy covers real option analysis, which many companies with large R&D budgets overlook, and links the real option analysis to R&D performance measurement.  In addition, the authors present little-known European and American sequential compound R&D options.

The Portfolio contains charts and checklists to aid the practitioner in selecting R&D performance measurement metrics.  It also provides numerous examples and sample metrics. For more information on the BNA Accounting Policy & Practice Series, go to http://www.bnatax.com/tm/apps_details.htm or call 800.372.1033.

About the Authors

Wayne G. Bremser, Ph.D., CPA, and Hemantha S. B. Herath, Ph.D., ACMA, are accounting professors with extensive experience managing and writing about R&D performance measurement issues.  Dr. Bremser teaches at the Villanova University School of Business.  Dr. Hearth teaches at Brock University in Ontario, Canada.

About BNA Tax & Accounting
BNA Tax & Accounting is the foremost source of news, analysis, and practice tools for tax attorneys, estate planners, accountants, and corporate tax and financial accounting professionals. For more than 50 years, BNA Tax & Accounting has offered practitioners expert insights and guidance on every significant issue in tax planning and financial accounting. Written by practitioners for practitioners, BNA’s award-winning Portfolios offer topic-driven, in-depth guidance on transactions designed to help tax professionals achieve new levels of excellence and client service. Visit the BNA Tax & Accounting Center online at www.bnatax.com.

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BNA is the leading independent publisher of print and electronic news and information for professionals in business and government. BNA produces more than 300 news services, including the highly respected Daily Labor Report, U.S. Law Week,and Daily Report for Executives. Visit BNA online at www.bna.com