Becker Ch1

Question 1

Amortization of capitalized software cost

Answer 1

Greater of 1) streight linfe 2) sales revenue from the software for the period / total projected sales.

Question 2

R&D cost (USGAAP) should be

Answer 2

Expensed

Question 3

Life for amotization is

Answer 3

Lessor of legal or econ life

Question 4

increase in AR

Answer 4

income

Question 5

reduction in AP

Answer 5

income

Question 6

cost to develop software (internal ues). Expense or capitalized?

Answer 6

if cost inccured in preliminary project sate, expense, after the preliminary project sate, capitalized and depreciated over the economic life.

Question 7

expense is recongnized

Answer 7

when entity economic benefits are use dup in deliverying or producing goods, rendering service,

Question 8

impairment gain (IFRS)

Answer 8

income statement up to revaluation loss, remaing is revaluation surpolus and park in coprehensive income

Question 9

good will is analyized at

Answer 9

IFRS: Cash generating unit, GAPP : impairment at reporting unit.

Question 10

IFRS goodwill impairment

Answer 10

Recoverable amount (FV - cost to sell) - carrying value