Asked by Brooke Patterson on Jun 19, 2024
Verified
Which of the following is not true in comparing U.S.GAAP and International Financial Reporting Standards (IFRS) ?
A) IFRS and U.S.GAAP both allow intangible assets to be reported at their cost minus accumulated amortization.
B) U.S.GAAP requires expensing of all costs of research and development.
C) IFRS allows for adjustments for increases in fair value of tangible assets.
D) IFRS requires capitalizing of research costs and expensing of development costs.
U.S. GAAP
Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting used in any jurisdiction.
- Comprehend the treatment and classification of research and development costs under different accounting standards.
Verified Answer
US
Utkarsh SinhaJun 19, 2024
Final Answer :
D
Explanation :
Under IFRS, research costs are expensed as incurred, similar to U.S. GAAP, but development costs can be capitalized if certain criteria are met, not the other way around.
Learning Objectives
- Comprehend the treatment and classification of research and development costs under different accounting standards.
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