Test
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Title: Test

Essay Details:

Subject: Business
Author: Gabriel P
Date: May 21, 2014
Level: University
Grade: A
Length: 4 / 1180

Essay text:

In the current, knowledge-based economy much of the value creation or destruction precedes, sometimes by years, the occurrence of transactions. The successful development of a drug creates considerable value, but actual transactions, such as sales, may take years to materialize. Until then, the accounting system does not register any value created in contrast to the investments made into R&D, which are fully expensed. This difference, between how the accounting system is handling value created and is handling investments into value creation, is the major reason for the growing disconnect between market values and financial information...

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