Depreciation is based on the fair value of assets. An impairment loss occurs if the carrying value exceeds the recoverable amount, defined as the higher of the asset’s fair value (less costs to sell) and its value in use, which is the discounted net cash flows. For the purposes of determination which expenses may be capitalized, Research and Development expenditures are treated differently. Intangible assets are acquired at amortized cost.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Which of the following refers to the similarity between the U.S. GAAP and IFRS regarding accounting for Long-Lived Assets? 

Depreciation is based on the fair value of assets.

An impairment loss occurs if the carrying value exceeds the recoverable amount, defined as the higher of the asset’s fair value (less costs to sell) and its value in use, which is the discounted net cash flows.

For the purposes of determination which expenses may be capitalized, Research and Development expenditures are treated differently.

Intangible assets are acquired at amortized cost.

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