Briefly describe how the accounting for intangibles differs under IFRS. To answer this look under IAS 38, the standard pertaining to intangible assets. In particular, explain the accounting for internally-generated intangibles under IAS 38.
Intangibles The treatment of acquired intangible assets
helps illustrate why IFRS is considered more "principles based."
Acquired intangible assets under U.S. GAAP are recognized at fair value,
while under IFRS, it is only recognized if the asset will have a future
economic benefit and has measured reliability. Intangible assets are
things like R&D and advertising costs.
Under IFRS, the last-in, first-out (LIFO) method for accounting for inventory costs is not allowed. Under U.S. GAAP, either LIFO or first-in, first-out
(FIFO) inventory estimates can be used. The move to a single method of
inventory costing could lead to enhanced comparability between
countries, and remove the need for analysts to adjust LIFO inventories
in their comparison analysis.