Question: Which statement is true concerning U.S. GAAP versus IFRS reporting for business combinations? A. U. S. GAAP and IFRS both require capitalization of in-process R&D

  1. Which statement is true concerning U.S. GAAP versus IFRS reporting for business combinations?

A.

U. S. GAAP and IFRS both require capitalization of in-process R&D as an identifiable intangible asset.

B.

U.S. GAAP and IFRS both require all asset and liability valuation corrections to be reported in income.

C.

U.S. GAAP requires recognition of an earnout as part of initial acquisition cost, while IFRS requires an earnout to be recorded only when it is paid.

D.

U.S. GAAP expenses consulting costs while IFRS includes these costs as part of goodwill.

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