What Are Recognition Differences in International Reporting and What Would

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The Answer is Recognition differences relate to whether an item is recognized or not, how it is recognized, or when it is recognized. An example of recognition differences exist for the recognition of research and development costs by using U.S. GAAP or IFRS. U.S. GAAP requires that research and development costs must be expensed immediately. The only exception relates to costs incurred in developing computer software, which must be capitalized when several restrictive criteria are met. IAS 38 also requires immediate expensing of all research costs. Development costs, on the other hand, must be recognized as an internally generated intangible asset when certain criteria are met. These costs are amortized over their useful life not exceeding 20 years.

What Are Recognition Differences in International Reporting and What Would

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