Research and Development Costs Cressman Company incurred R&D costs for various projects in 2019 as follows: Materials used for research $ 250,000 160,000 Materials used for development Equipment acquired that will have alternative uses in future research projects for 4 years 2,000,000 Personnel costs of employees involved in research 600,000 Personnel costs of employees involved in development 400,000 Consulting fees paid to outsiders for research 20,000 Consulting fees paid to outsiders for development Indirect costs reasonably allocable for research 100,000 130,000 Indirect costs reasonably allocable for development 70,000 Required: 1. What is the amount of Cressman's R&D expenses for 2019 if it uses U.S. GAAP? CRESSMAN COMPANY 2019 Expense Calculations U.S. GAAP Materials used in R&D projects Depreciation expense on equipment (straight-line) Personnel costs Consulting fees Indirect costs 2. How would your answer change if Cressman uses IFRS? Assume that the company can demonstrate that the projects are expected to generate future economic benefits. CRESSMAN COMPANY 2019 Expense Calculations IFRS Materials used in research projects Depreciation expense on equipment (straight-line) Personnel costs Consulting fees Indirect costs Materials used in development projects Personnel costs Consulting fees Indirect costs