Roman l weil katherine schipper jennifer francis financial accounting an introduction to concepts methods and uses cengage learning 2012

Differences Between U.S. GA AP and IFRS(Exhibit 17.1, p. 670)© Cengage Learning 2014ChapterReporting TopicU.S. GAAPIFRS8Revenue recognitionMust have delivered a product or service inreturn for net assets capable of sufficientlyreliable measurement. Over 200 documentsprovide industry-specific and transactionspecific guidance.One general standard and a few documents withindustry-specific guidance. For long-term contracts,use percentage-of-completion method if amountsare estimable. Otherwise, use cost-recovery method.Completed contract method not permitted.9Inventories and cost ofgoods sold: lower of costor marketMeasurement of market value uses acombination of replacement cost and netrealizable values.Measurement of market value uses net realizable value.9Inventories: cost flowSpecific identification, FIFO, weightedaverage, and LIFO cost-flow assumptionspermitted.Specific identification, FIFO, and weighted-averagecost-flow assumptions permitted. LIFO not permitted.10Property, plant, andequipment: revaluationsabove acquisition costNot permitted.Permitted under certain conditions.10Research and developmentcostRecognize as an expense in the periodincurred, except for certain softwaredevelopment costs.Recognize research costs as an expense in the periodincurred. Capitalize certain development costs andamortize them over the expected period of benefit.10Property, plant, andequipment: impairmentlossIf ca … Purchase document to see full attachment