Don't use ai Explanation both correct and incorrect options How does IAS 38 (Intangible Assets) differ from U.S. GAAP with respect todevelopment costs?O a.U.S. GAAP treats development costs as part of "Goodwill", whereas IAS 38treats these costs as an intangible asset.O b. U.S. GAAP requires capitalization of development costs, whereas IAS 38makes capitalization of these costs optional.○ c. U.S. GAAP usually requires expensing of development costs, whereas IAS 38allows capitalization of development cost when certain conditions are met.Od. U.S. GAAP requires expensing of all development costs, and IAS 38 requirescapitalizing all development costs.

c. U.S. GAAP usually requires expensing of development costs, whereas IAS 38 allows capitalization…

Answered: How does IAS 38 (Intangible Assets)…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 9Q

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Similar questions

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.
Just briefly describe how impairment losses for goodwill are calculated under U.S. GAAP and IFRS, respectively.
(s) Which of the following is different about capitalizing interest under U.S. GAAP and IFRS? O GAAP requires payments to be made on the project before interest can be capitalized. O GAAP requires capitalization stop when the asset is substantially ready to use. O GAAP requires construction to begin before interest can be capitalized. O GAAP requires interest be capitalized on financed and unfinanced expenditures.
According to IAS 38 Intangible Assets, which of the following conditions would preclude any part of the development expenditure from being capitalized as an intangible asset? A The development is incomplete B The benefits flowing from the completed development are expected to be at least equal to its cost C Funds are unlikely to be available to complete the development D The development is expected to give rise to more than one product
Long-term operating assets can be reported on the balance sheet at fair value instead of historical cost. Does this statement apply to IFRS and U.S. GAAP? Group of answer choices It does not apply to IFRS and U.S. GAAP. It applies to U.S. GAAP only. It applies to IFRS only. It applies to both IFRS and U.S. GAAP.
Discuss the primary differences between U.S. GAAP and IFRS with respect to the acquisition of property, plant, and equipment and intangible assets.
Accounting for plant assets involves cost determination, depreciation, additional expenditures, and disposals. Is plant asset accounting broadly similar or dissimilar between IFRS and U.S. GAAP? Identify one notable difference between IFRS and U.S. GAAP in accounting for plant assets.
Statement I: An internally generated goodwill shall not be recognized as an intangible asset.Statement II: In amortizing intangible asset, the appropriate method is the straight-line method, unless the pattern in which the asset’s economic benefits are consumed by the enterprise can be determined reliably.Statement III: Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance should be recognized as intangible assets.Which of the following statements are true? I and III only I, II and III I and II only II and III only
q19 Which statement is INCORRECT regarding recognition of intangible assets? Select one: a. An intangible asset should be initially recorded at cost. b. An intangible asset acquired in exchange of another asset can be recognized at the fair value of the asset given up in exchange. c. An intangible asset can only be recognized if its cost can be measured reliably. d. An intangible asset can be recorded at its fair value if its cost cannot be ascertained.
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e. Under U.S. GAAP, the impairment tests for goodwill and PP&E are different. Describe the main difference.
Discuss the primary differences between U.S. GAAP and IFRS with respect to theutilization and impairment of property, plant, and equipment and intangible assets.

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