Repeat the requirements in E11- 26 assuming that Carlson reports under IFRS. Assume all the conditions to capitalize development costs have been met and the project is completed on January 1. Capitalized development costs are amortized over four years. What is the difference between the research and development expense under U. S. GAP compared to IFRS?
In E11-26
Description Amount
Diagnostic equipment ( 5- year life, $ 10,000 residual value, SL
method, purchased January 1) …………………………………… $ 500,000
Salaries of laboratory technicians………………………………… 325,000
Testing materials used in experimentation………………………… 137,500
Supplies used in the testing process………………………………… 23,500
Salary for engineer in the design phase of production……………… 87,000
Depreciation expense on research facilities………………………… 8,000
Total Cost of Research Activities…………………………………… $ 1,081,000