StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Research Paper example - Financial Reporting Project : Intangible Assets under U.S. GAAP and IFRS

Only on StudentShare
Research Paper
Finance & Accounting
Pages 6 (1506 words)
Intangible Assets Recognition and Measurement under US GAAP and IFRS Part IA: Recognition of Intangible Assets under US GAAP and IFRS Comparison: The IFRS recognizes two categories of intangible assets: (1) Internally created intangible assets and (2) Purchased intangible assets…

Extract of sample

Here, separable means selling, transferring, exchanging, renting and licensing. There is no contingency regarding they being separable or transferable. Similarly, the US GAAP categories of intangible assets: (1) Limited life intangible asset and (2) Indefinite life intangible asset. An intangible asset is an asset other than financial assets lacking physical appearance (SFAS 142 Glossary) and is separately distinguished from goodwill that is derived from any contractual or legal rights. These rights can be separated or transferred, sold, licensed, exchanged, rented. There is no contingency regarding they being separable or transferable. Contrast: In order to qualify as an asset under IFRS, the intangible right should be identifiable. It should have control as per the guidelines provided in IAS 38.113-.116. Another important benchmark to qualify as an asset, the intangible right’s cost should be measured in a reliable way (IAS 38.21) In case of an intangible asset that has been purchased or acquired through business combination, it is considered as a requisite condition that the asset will bring future economic benefits to the organization. In order to qualify as an asset under US GAAP, the intangible asset must have a relevant attribute that is measurable through reliable method (SFAC 5.63). It should be fully controlled by the enitty (SFAC 6.26). ...
Download paper
Not exactly what you need?

Related papers

IFRS 3 Business Combinations and IAS 38 Intangible Assets govern how companies should account for and disclose their goodwill an
For instance, all payments made to acquire a business must be recorded at fair value at the date of acquisition. And the contingent payments need to be classified as ‘debt’ which is measured sequentially through the income statement. All costs pertaining to acquisitions are expensed. IAS 38 This standard prescribes accounting policies for treating intangible assets that are not supervised in…
4 pages (1004 words)
Compare and Contrast IFRS vs US GAAP
In addition, the US GAAP treatment allows either single step or multiple steps format for income statement captions. According to Epstein (2011), under US GAAP, expenses such as cost of sales and administrative expenses have to be classed by function whereas in IFRS, expenses can be classed by function or nature. According to US GAAP treatment, classification of extraordinary items is permitted…
4 pages (1004 words)
International Financial Reporting Standards (IFRS)
The policies of IFRS are more advanced and precise for meeting the changes in the new accounting and audit systems, so US is also moving towards IFRS. The US GAAP is actually concept based, whereas IFRS is based on principles. The methodology of these two frameworks and the accounting treatments are also different. In US GAAP, the research is mainly based on the literature but in case of IFRS, the…
3 pages (753 words)
IFRS and GAAP Convergence
When the financial statements are available in annual reports, it is the responsibility of the managers to evaluate and discuss results of company performance. External parties use these financial statements to analyze the company’s financial performance. Therefore, external users of financial statements are requires to be familiar with the tools and techniques which are used in financial…
4 pages (1004 words)
Tangible and Intangible Assets
Intangible assets cannot be seen or felt that is they are non-physical in nature and they are usually non-monetary. Intangible assets are basically the long term resources of the given firm, usually the legal rights of the firm including patents, trademarks, goodwill and copyrights. Intangible assets cannot be destroyed by fires or other tragedies and they usually add value to the company’s…
7 pages (1757 words)
The United States corporations will benefits by converting from GAAP to IFRS. One, IFRS allows extra flexibility than United States GAAP, and because stock option and bonus schemes normally offer managers incentives to enhance earnings, this flexibility will probably be utilized to enhance the income of U.S corporations more frequently than it will be employed to lessen earnings. Two, converting…
3 pages (753 words)
Convergence between GAAP and IFRS
The US Generally Accepted Accounting Principles is the major accounting standard used in the United States (Walton 45-46). The International Financial Reporting Standard on the other hand is the accounting standard practiced in over 110 countries in the world. U.s. GAAP is mostly considered as a more rule based accounting system, while IFRS is mostly based on principles. It is therefore obvious…
6 pages (1506 words)