How Does IAS 38 (Intangible Assets) Differ from U

question 22

Multiple Choice

How does IAS 38 (Intangible Assets) differ from U.S. GAAP with respect to development costs?

• A) U.S. GAAP does not allow capitalization of development costs, whereas IAS 38 allows capitalization of these costs.
• B) U.S. GAAP requires capitalization of development costs, whereas IAS 38 makes capitalization of these costs optional.
• C) U.S. GAAP treats development costs as part of "Goodwill", whereas IAS 38 treats these costs as an intangible asset.
• D) U.S. GAAP requires expensing of all development costs, and IAS 38 requires capitalizing all development costs.

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Definitions:

Internal Validity

The extent to which a study accurately establishes a cause-effect relationship within its controlled variables.

Observer Bias

The distortion of measurement or perception due to the personal beliefs, expectations, or experiences of the researcher or observer.

Unusual Problems

Issues or difficulties that deviate from what is typically encountered or expected in everyday life or in standard diagnostic frameworks.

Uncommon Disorder

A rare or infrequent medical or psychological condition that affects a small percentage of the population.