1. IFRS requires lessees to recognize a right-of-use asset and related liability for leases with terms longer than one year.

A. True

B. False

2. Which of the following statements is correct?

A. Both IFRS and GAAP permit revaluation of property, plant, and equipment, and intangible assets (except for goodwill).

B. IFRS requires capitalization of research and development costs once economic viability is met.

C. GAAP permits capitalization of development costs.

D. IFRS requires capitalization of development costs once economic viability is met

3. A loss on impairment of an intangible asset under IFRS is the asset's: A. carrying amount less the expected future net cash flows.

B. book value less its fair value.

C. recoverable amount less the expected future net cash flows.

D. carrying amountless its recoverable amount.

Use the following for questions 4 & 5

The following costs are incurred during the research and development phases of a laser bone scanner

Laboratory research aimed at discovery of new knowledge $800,000

Search for application of new research findings 400,000

Salaries of research staff designing new laser bone scanner 1.200,000

Material, labor and overhead costs of prototype laser scanner 850,000

Costs of testing prototype and design modifications 450,000

Engineering costs incurred to advance the laser scanner to full production stage (technological feasibility reached) 700,000

Identify which of these are development phase items and will be immediately expensed under GAAP and IFRS. 28. US GAAP S 29. IFRS