Which of the following statements is true?

	a.	IFRS requires firms to expense immediately all internal expenditures for R&D costs.
	b.	Under IFRS, the product development portion of R&D is capitalized.
	c.	U.S. standard setters require R&D costs to be expensed because of the uncertainty in judging their future revenue-generating potential.
	d.	GAAP required disclosure of firms’ R&D expenditures assist the investor well. This is particularly true for firms with large R&D expenditures, such as technology firms.

1. Which of the following statements is true? (Select one or more)

   	a.	For some transactions U.S. GAAP requires that value changes are recognized on the balance sheet and the income statement when they occur, even if not realized.
   	b.	U.S. GAAP allows firms to revalue upward the values of assets whose fair values have increased.
   	c.	A write down is necessary if the fair market value (FMV) of equipment is less than the carrying value currently on the books due to obsolescence.
   	d.	Firms with an unrealized asset value decrease must wait until a market transaction takes place to record this type of loss

Answer rating: 100% (QA)

Answer 1 Option B is the correct option Development cost is capitalized under IFRS Under IFRS IAS 38 ... View the full answer