• Imagine you are the chief financial officer (CFO) of a corporation with plans to complete theacquisition of a key subsidiaryduring the current year. Your chief executive officer (CEO) has requested a presentation to the Board of Directorsdescribing the methodsavailable to account for theacquisition internallyand thebest methodfor the companyduring the acquisition year.Please assess the value of each method identified in your presentation to the Board and support your recommendation with examples.
• Compare the key differences between the U.S. GAAP and IFRS positions on both intangible research and development costs and tangible depreciable assets. Indicate the key benefits and drawbacks to financial statement users of each method (U.S. GAAP and IFRS). Next, determine the method that provides the most relevant information to financial statement users. Provide support for your rationale.