1. Under US GAAP companies are required to expense all IR&D expenditures. Under the IASB, IR&D expenditures,...
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1. Under US GAAP companies are required to expense all IR&D expenditures. Under the IASB, IR&D expenditures, under certain guidelines, can be capitalized. Do you think we should follow the IASB for the capitalization of IR&D expenditures? Why?
2. Under GAAP most companies capitalize on a long-term asset as one item even if it has various components such as a building with air-conditioning, roofing, and flooring. Under the IASB, companies are required to use component depreciation. What do you see as the benefits of each method of depreciation?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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