Describe the critical role of international perspectives in the application of accounting. 2. Discuss how differences in culture, the legal system, and the socio-economic environment impact the interpretation and analysis of financial information in different countries. 3. Improve your skills related to global financial information. 4. Discuss the need for the creation of uniform accounting standards of international application. ABC. Corporation is a U.S based Company that prepares its consolidated statements in accordance with U.S GAAP. The Company reported in Year 1: net income of $1,000,000 and total equity $8,000,000. The Company wishes to determine the impact that a switch to IFRS would have on its financial statements and has engaged you to prepare a reconciliation of income and equity from US GAAP to IFRS. You have identified the following area in which ABC. Co.’ accounting principles based on U.S. GAAP differ from IFRS. Research and Development: The Company disbursement $200,000 in Year 1. Of this amount, 40% related to development activities after the point at which criteria had been met indicating that an intangible asset existed. 

Required: Answer the following. 

1. Using IFRS. Explain the accounting treatment for Year 1 and Year 2 if the asset will start selling in Year 2. The company will amortize for 5 years. 

2. Is there any difference with US GAAP? Explain