Question
Research and Development In 2016, SaulGroup spent $1 million in developing Product Y. Of this amount, 30% related to development cost (IAS 38 criteria had
Research and Development
In 2016, SaulGroup spent $1 million in developing Product Y. Of this amount, 30% related to development cost (IAS 38 criteria had been met for recognition of the development costs as an intangible asset). The development of Product Y was complete, and the product was available for sale on January 2, 2017. Sales of the product are expected to continue for five years. Straight-line method is used.
a. What is the impact the research and development costs have on SaulGroups in 2016 and 2017 income under (1) IFRS and (2) U.S. GAAP?
b. How would you explain the difference in income, total assets, and total stockholders equity related to Product Y using IFRS and U.S. GAAP over the year 2016 and 2017?
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Excel For Accountants Tips, Tricks & Techniques
Authors: Conrad Carlberg
1st Edition
1932925015, 9781932925012
