Research and Development ABC. Corporation is a U.S based Company that prepares its consolidated statements in accordance with U.S GAAP. The Company reported in 2014: 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 2014. Of this amount, 40% related to development activities subsequent to the point at which criteria had been met indicating that an intangible asset existed. Using IFRS. Explain the accounting treatment for 2014 and 2015, if the asset will start selling in 2015. The company will amortize for 5 years. Is there any difference with US GAAP? Explain