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If Kane Plc. had to report under U.S. GAAP instead, its income before taxes for fiscal year 2022 would be: a. Higher by £300 b. Lower by £300 c. Lower by £720 d. Lower by £500 e. None of the above

If Kane Plc. had to report under U.S. GAAP instead, its income before taxes for fiscal year 2022 would be: a. Higher by £300 b. Lower by £300 c. Lower by £720 d. Lower by £500 e. None of the above

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6. Consider the following excerpts from the balance sheet and income statement of Kane Plc. Kane Plc. reports under IFRS. Amounts in £ Capitalized development costs (net) Research expenses* 2,000 350 Amortisation of capitalised development costs 400 *Amounts spent in researching a new drug, whose technological and commercial feasibility has not yet been established. 2022 ANSWER: B 2,300 420 500 2021 If Kane Plc. had to report under U.S. GAAP instead, its income before taxes for fiscal year 2022 would be: a. Higher by £300 b. Lower by £300 c. Lower by £720 d. Lower by £500 e. None of the above
Transcribed Image Text:6. Consider the following excerpts from the balance sheet and income statement of Kane Plc. Kane Plc. reports under IFRS. Amounts in £ Capitalized development costs (net) Research expenses* 2,000 350 Amortisation of capitalised development costs 400 *Amounts spent in researching a new drug, whose technological and commercial feasibility has not yet been established. 2022 ANSWER: B 2,300 420 500 2021 If Kane Plc. had to report under U.S. GAAP instead, its income before taxes for fiscal year 2022 would be: a. Higher by £300 b. Lower by £300 c. Lower by £720 d. Lower by £500 e. None of the above
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