Indicate whether each of the following describes an accounting treatment that is acceptable under IFRS, U.S. GAAP,
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Acceptable Under IFRS U.S. GAAP Both Neither A company takes out a loanto finance the construction of a building that will be used by the company. The interest onthe loan is capitalizedaspart ofthe cost ofthe building. Inventory is reported on the balance sheet using the last-in, first-out (UFO) cost flow assumption. . The gain on a sale-leasebacktransaction classifiedas an operating leaseis deferred andamortized overthe lease tem. A company writes a fixed asset down to its recoverable amount and recognizes an impaiment loss in Year 1. In a subsequent year, the recoverable amount is determined to exceed the asset's carying value and the previously recognized impairment loss is reversed. A company paysless than the fair value of net assets acquiredin the acquisition ofanother company. The acquirerrecognizes the difference as a A company enters into an eight-year lease on equipment that is expected to havea usefullife of 10 years. The lease is accounted for as an operatinglease gain on purchase ofanother company An intangible asset with an activemarket that waspurchasedtwo years ago is caried on the balance sheet at fair value. In preparing interim financial statements, interim periods are treateda discrete reporting periods rather than as an integral part ofthe full ear Development costs are capitalized when certain criteria are met Interest paid on borrowings is classified as an operating activity irn statement of cash flows
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