Thanks to adaptive business casing, accounting is entitled to capitalize your innovation expenses.

To qualify for cost capitalization and subsequent amortization, accounting rules require justification of a positive expected value creation. For adaptive projects, this justification can now be provided by real options valuation.

By leveraging real options finance, organizations can:

• Capitalize innovation expenses and improve financial reporting
• Justify investments in adaptive projects with sound financial rationale
• Enable amortization of innovation costs, supporting long-term profitability
• Align accounting practices with modern, adaptive project management

This approach empowers organizations to invest favorably in innovation, knowing that expenses can be capitalized and amortized in line with accounting standards.

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Key Takeaway: Real options finance enables organizations to relieve their P&L by justifying and capitalizing innovation expenses, supporting sustainable, profitable growth.