In Accounting for Research and Development Costs

question 21

Multiple Choice

In accounting for research and development costs.

• A) the general rule under both US GAAP and IFRS is that research and development costs should be expensed as incurred .
• B) IFRS generally expenses all research and development costs while US GAAP expenses research costs as incurred but capitalizes development costs once technological and economic feasibility has been demonstrated.
• C) US GAAP generally expenses all research and development costs while IFRS expenses research costs as incurred but capitalizes development costs once technological and economic feasibility has been demonstrated.
• D) both US GAAP and IFRS expense research costs as incurred but capitalize development costs once technological and economic feasibility has been demonstrated.

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The face value of a bond or stock as stated by the issuing company, which may differ from its market value.

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