Moxie Corporation incurs research and development costs of $500,000 in 2011, 30 percent of which relates to

Question:

Moxie incurs research and development costs of $500,000 in 2011, 30 percent of which relates to development activities subsequent to certain criteria having been met that suggest that an intangible asset has been created. The newly developed product is brought to market in January 2012 and is expected to generate sales revenue for 10 years.
a. Determine the amount Moxie should recognize as research and development expense in 2011 under (1) U.S. and (2) IFRS.
b. Determine the adjustments that Moxie would make in 2011 and 2012 to reconcile net income and stockholders' equity under U.S. to IFRS.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...