Explain some of the differences in accounting for operating assets that exist between U.S. GAAP and IFRS
Both IFRS and U.S. GAAP require companies to report an amount for goodwill and record a write down of the goodwill if the asset has been ‘‘impaired.'' However, the methods of evaluating impairment differ between the two sets of standards. The treatment of research and development (R&D) costs also differs. U.S. GAAP requires all internally generated research and development costs to be treated as an expense. IFRS requires research costs to be recognized as an expense but does allow certain development costs to be accounted for as an asset.
Perhaps the most significant difference in the accounting for operating assets concerns the use of fair values. Generally, both sets of standards require operating assets to be carried at their historical cost. However, IFRS allows companies to revalue the assets at fair value (either up or down from historical cost) if reliable measures are available. U.S. GAAP does not allow companies to revalue to fair value except in cases where an impairment of an asset has occurred and the asset must be written down to a lower value.
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Indicate whether the statement is true or false.
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In constructing variable control charts,______.
a. the population standard deviation is typically unknown b. the sample standard deviation is typically unknown c. we can use the population mean instead of the population standard deviation d. we can use the population mode instead of the population range