Vyaderm Accounting case

Should the board approve Naldas request to change the budget targets for the year? If so, how would you change them?

Vyaderm case: (Team assignment) Prepare an answer to the following four questions. In your own words (do not copy and paste from the case):

1) What is the rationale for capitalizing R&D as an asset instead of expensing it immediately?

2) What are the pros and cons of caps and floors (see Exhibit 3 of the case)?

3) What are the intended benefits of a bonus bank?

4) If you were in Vedrines shoes, what would you do about the bonus for the Dermatology Division?