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The AMA Handbook of Due Diligence by Andrew J. Sherman, William M. Crilly

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ENTITY Form 8-16
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
138
CURRENT DEVELOPMENT BUDGET CONSIDERATIONS
COMPANY FUNDED NEAR TERM DEVELOPMENT BUDGET
ITEM CURRENT YEAR
20
NEXT ANNUAL BUDGET
20
Development Budget $ $
Estimated Revenues $ $
Expenditures As A Percent OF Revenues % %
ADEQUACY OF CURRENT RESOURCES TO MEET DEVELOPMENT OBJECTIVES
Are the current resources (i.e., budget, staffing, facilities and equipment) adequate to meet near term
development objectives? [ ] Yes [ ] No If not, what additional resources may be required?
COMPETITIVE CONSIDERATIONS
Does the current budget appear adequate to keep pace with the competition? If not, what additional
resources are required?
What additional resources are required to move ahead of the competition?
POTENTIAL REORDERING OF PRIORITIES WITHIN THE CURRENT BUDGET LEVEL
Do recent events, either internal or external, suggest a reordering of project priorities? [ ] Yes [ ] No
If so, what changes are recommended?
Should consideration be given to accelerating certain projects and delaying others? [ ] Yes [ ] No
If so, what are the recommended changes?
ENTITY Form 8-17
139
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
FUTURE DEVELOPMENT REQUIREMENTS
FUTURE TECHNICAL TRENDS
What are the evolving technological trends that will impact the future development of the entity’s product lines
and/or services? List in decreasing order of importance.
NEW TECHNICAL SKILL REQUIREMNTS
What new technical skills should be added to the development staff within the next three years if it is to maintain
an in-house capability to keep pace with the above technological developments?
TECHNICAL SKILL
AND DEGREE LEVEL REQUIRED
ESTIMATED
REQUIREMENT
TIMING OF REQUIREMENT
(Quarter/Year)
FUTURE EQUIPMENT AND FACILITY REQUIREMENTS
What major new equipment and/or facilities are estimated to be required within the next three years to keep
pace with the technological developments?
MAJOR EQUIPMENT/FACILITY
REQUIREMENTS
APPROXIMATE
INSTALLED COST
TIMING OF INSTALLATION
(Quarter/Year)
$
ENTITY Form 8-18
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
140
ACCOUNTING FOR DEVELOPMENT EXPENDITURES
CURRENT ACCOUNTING PROCEDURES
Are all current development expenditures being charged off as incurred? [ ] Yes [ ] No If not, what
expenditures are not charged off to current operations?
If not charged off as incurred, what is the accounting treatment?
If certain current development expenditures are being amortized, please provide a list of the items and their
amortization schedule.
PREVIOUS ACCOUNTING PROCEDURES
Were different accounting procedures used for development expenditures in the past? [ ] Yes [ ] No If so,
what was the first year the new procedures were implemented?
How did the previous procedures vary from those currently utilized?
If the previous procedures involved the amortization of development expenditures, how were expenditures
related to unsuccessful and/or terminated projects treated?
When the transition was made to the current procedures, was the entire remaining balance in the amortization
account charged off? [ ] Yes [ ] No If so, what was the amount written off at that time?
If the above answer was “no, what was the then remaining balance in the amortization account and what have
been the annual amortization charges in the intervening years?
Is there a balance remaining in the amortization account at the present time? [ ] Yes [ ] No If so, what is
the remaining amount and its amortization schedule?
ENTITY Form 8-19
141
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
DEVELOPMENT ORGANIZATION
ORGANIZATION CHART
Organization Reports To: ____________________________________ Total Personnel: ______
ENTITY Form 8-20
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
142
DEVELOPMENT ORGANIZATION - RESUMES OF KEY PERSONNEL
NAME TITLE

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