With Regard to Convergence of Accounting for Business Combinations Between

question 21

Multiple Choice

With regard to convergence of accounting for business combinations between IFRS and U.S.GAAP, the major changes to U.S.GAAP include:

• A)classifying noncontrolling interests as assets.
• B)use of acquisition method for business combination.
• C)recognizing in-process research and development costs as expense.
• D)recognizing incurred research costs as liabilities.

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Definitions:

Laboratory Studies

Controlled experiments or research conducted in a specialized facility equipped for scientific investigation and analysis.

Biological Hazard

A threat posed by biological substances or organisms that could harm human health, including viruses, bacteria, fungi, and parasites.

Bacteria

Microorganisms that exist in various environments, some beneficial to human health or essential for nature, while others can cause diseases.

Earthquake

An earthquake is the shaking of the surface of the Earth resulting from a sudden release of energy in the Earth's lithosphere that creates seismic waves.