Research and development costs are: a. expensed under GAAP. b. expensed under IFRS. c. expensed under both GAAP and IFRS. d. None of the above.
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Research and development costs are:
a. expensed under GAAP.
b. expensed under IFRS.
c. expensed under both GAAP and IFRS.
d. None of the above.
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- Research and development costs a. Are recorded as research and development assets. b. Are capitalized and then amortized. c. Should be included in the cost of the patent they relate to. d. Should be expensed.Under IFRS a. research and development expenditures are expensed in the period incurred. b. research and development expenditures are capitalized and amortized. c. development expenditures that meet certain criteria are capitalized and amortized; research expenditures are expensed in the period incurred. d. research expenditures that meet certain criteria are capitalized and amortized; development expenditures are expensed in the period incurred.Choose the correct.For which of the following does IFRS for SMEs not provide a simplification of full IFRS?a. Goodwill.b. Borrowing costs. c. Development costs.d. Inventory.
- For which of the following does IFRS for SMEs not provide a simplification of full IFRS?a. Goodwill.b. Borrowing costs.c. Development costs.d. Inventory.How should research and development costs be accounted for, according to an IASB Statement? a. Must be capitalized when incurred and then amortized over their estimated useful lives. b. Must be expensed in the period incurred. c. May be either capitalized or expensed when incurred, depending upon the materiality of the amounts involved. d. Must be expensed in the period incurred unless it can be clearly demonstrated that the expenditure will have alternative future uses or unless contractually reimbursable.Which of these statements is true? a. The matching concept requires that we distinguish between expired and unexpired costs. b. To say that a cost has expired means that the benefits associated with the expenditure have been recognized. c. Most costs that represent future benefits are classified as assets. d. Matching is required for external reporting. e. All of the above.
- Research & Development costs: A)Are included in the cost of a patent on the balance sheet B) Should be expensed C) Are amortized over the useful life of the patent D) Both A&B are correctin general, what is the required accounting treatment for research and development costs?After recognition, exploration and evaluation assets are accounted for under the cost model revaluation model fair value model a or b
- Explain the key aspects of the ‘cost basis’ and ‘revaluation basis’ for non-current assets, and highlight the differences between them.Under PFRS 3 a. both direct and indirect costs are to be capitalized b. both direct and indirect costs are to be expensed c. direct costs are capitalized and indirect costs are expensed d. direct costs and indirect costs are ignoredThe following statement is TRUE / FALSE (circle one): In accordance with ASC 730-10 (SFAS # 2), “Research” costs must be expensed when the related research activity takes place, while “Development” costs must be capitalized when the related development activity takes place