IFRS

Question 1

Chapter 11 similarities

Answer 1

Definition of ppe the same, dep and useful life changes only effect current and future, accounting for disposals the same, cost to aquire natural resoruces, interest cost during construction capitalized, exchanges for non monetary assets the same, depreciation over useful life, same dep methods

Question 2

Chapter 11 differences

Answer 2

IFRS requires component dep GAAP is rarely used, IFRS can ise historical cost of revaluation GAAP doesnt premit revaluation, testing for impairments of long lived asets, reversals of impairment losses are permitted in IFRS

Question 3

Chapter 12 similarities

Answer 3

Same def for intagible assets, recognize an intagible separatly from goodwill if intangible is legally separate, recognize in process RD as separate if it meets definition, RD is always expensed

Question 4

Chapter 12 differences

Answer 4

IFRS permitts revaluation on limited live intangibles, IFRS permits some capitalization of internallu generated assets GAAP requires expense, IFRS requires an impairment test at each reporting date for long lived and records if carrying>recoverable GAAP impairment is carrying>fair value, IFRS perments repairment GAAP doesnt for in use, IFRS RD capitalized once technological feasibility

Question 5

IFRS intangible rules

Answer 5

Lack physical substance and not financial instruments

Question 6

IFRS intangible

Answer 6

Identifiable. Asset must be separate from the company or arises from contractual or legal right from which economic benifit will flow to the company