IFRS GAAP ACCOUNTING

Accounting
Tutor: None Selected Time limit: 1 Day

In your opinion, which accounting treatment ( US GAAP or IFRS) provides more relevant disclosures about internally generated intangibles? Which treatment provides more-reliable information?

May 11th, 2015

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.

May 11th, 2015

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May 11th, 2015
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May 11th, 2015
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