Barrel of Oats (BOA), a U

question 56

Multiple Choice

Barrel of Oats (BOA) , a U.S.company, was acquired by an international company and BOA has a transition date of January 1, 2018 for first-time adoption of IFRS.BOA has a new cereal brand that is ready to be marketed but the company has not yet received copyright approval for the brand's logo.All costs for development of the copyright were expensed prior to IFRS January 1, 2018.BOA and its new international parent both have December 31 year-end accounting years.What should BOA do to prepare financial statements for the first time in accordance with IFRS?

• A) Debit development expense and credit copyright for the year ended December 31, 2018.
• B) Debit copyright and credit copyright expense at January 1, 2018.
• C) Debit copyright and credit research and development expense for the year ended December 31, 2017.
• D) Debit copyright and credit stockholders' equity at January 1, 2018.
• E) Debit stockholders' equity and credit research and development expense at January 1, 2018.