Both GAAP and IFRS consider intangible assets to be nonmonetary assets
that do not have any physical substance. There are three major
differences between the two bodies when it comes to dealing with
intangible assets. The first is involving development costs. Under GAAP,
development costs are expensed when they are incurred. Under IFRS,
development costs are capitalized. When GAAP is dealing with advertising
costs, they are either expensed as incurred or expensed when the
advertising is put in place for the first time. When IFRS handles
advertising costs for intangible assets, all costs are expensed when
incurred. Using GAAP, revaluation is not allowed for intangible assets,
but under IFRS, revaluation to the fair value of the intangible asset is
permitted. I believe that the IFRS is the most relevant in disclosing intangibles. I say this because GAAP is prohibited from doing so. However, GAAP is going to develop more reliable information in regards to projects that has occured within a business.
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