How does IAS 38 (Intangible Assets) differ from U.S. GAAP with respect to development costs? O a. U.S. GAAP treats development costs as part of "Goodwill", whereas IAS 38 treats these costs as an intangible asset. O b. U.S. GAAP requires capitalization of development costs, whereas IAS 38 makes capitalization of these costs optional. ○ c. U.S. GAAP usually requires expensing of development costs, whereas IAS 38 allows capitalization of development cost when certain conditions are met. Od. U.S. GAAP requires expensing of all development costs, and IAS 38 requires capitalizing all development costs.
How does IAS 38 (Intangible Assets) differ from U.S. GAAP with respect to development costs? O a. U.S. GAAP treats development costs as part of "Goodwill", whereas IAS 38 treats these costs as an intangible asset. O b. U.S. GAAP requires capitalization of development costs, whereas IAS 38 makes capitalization of these costs optional. ○ c. U.S. GAAP usually requires expensing of development costs, whereas IAS 38 allows capitalization of development cost when certain conditions are met. Od. U.S. GAAP requires expensing of all development costs, and IAS 38 requires capitalizing all development costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Explanation both correct and incorrect options
Transcribed Image Text:How does IAS 38 (Intangible Assets) differ from U.S. GAAP with respect to
development costs?
O a.
U.S. GAAP treats development costs as part of "Goodwill", whereas IAS 38
treats these costs as an intangible asset.
O b. U.S. GAAP requires capitalization of development costs, whereas IAS 38
makes capitalization of these costs optional.
○ c. U.S. GAAP usually requires expensing of development costs, whereas IAS 38
allows capitalization of development cost when certain conditions are met.
Od. U.S. GAAP requires expensing of all development costs, and IAS 38 requires
capitalizing all development costs.
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