25. 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 26. 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 27. 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 28 & 29 The following costs are incurred during the research and development phases of a laser bone scanner S800,000 Laboratory research aimed at discovery of new knowledge 400,000 Search for application of new research findings 1.200,000 Salaries of research staff designing new laser bone scanner 850,000 Material, labor and overhead costs of prototype laser scanner 450,000 Costs of testing prototype and design modifications Engineering costs incurred to advance the laser scanner to full production stage (technological feasibility reached) Identify which of these are development phase items and will be immediately expensed under GAAP and IFRS. 28. US GAAP S 29. IFRS