IFRS Differences Flashcards
Which inventory method is not allow under IFRS?
LIFO
How is the lower of cost or market rule differ in between GAAP and IFRS?
Under IFRS, inventories are measured at the lower of cost or net realizable value (NRV).
How is impairment loss test under IFRS?
- Impairment loss is assess at each report date whether indicator of impairment is exist
- IFRS require one step testing.
Calculation:
Impairment loss = carrying amount - recoverable amount
Under IFRS, under what condition can Development cost be capitalized?
Under IFRS-Development costs my result in recognition if the entity can demonstrate:
1) Technical feasibility
2) Intent to complete
3) Ability to use or sell the assets
4) Probable future economic benefits
5) The availability of resources to complete /sell or use the assets
6) The ability to reliably measure expenditures attributable to the asset
Research Cost
Research cost must be expense as it is incurred under IFRS