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taurus [48]
2 years ago
8

How physical assets valuation and development and research pose risk.​

Business
1 answer:
Alex Ar [27]2 years ago
7 0

Answer:

The differences between US GAAP and IFRS pose an extra cost because international corporations must prepare two separate accounting statements. But besides that, other potential risks include paying higher taxes than what the companies should pay int their home countries and the uncertainty generated by changing rules.

Not only do current tax rates affect potential investments, e.g. currently companies in the US pay relatively low corporate taxes (Tax Cuts and Jobs Act of 2017) but these benefits end on 2025. But also different methods for valuating physical assets and R&D costs can represent higher than expected taxes. E.g. depending on a company's needs, it may be beneficial to expense all R&D costs right away, or maybe it would be better to capitalize some of them after technical feasibility is achieved (IFRS).

The main advantage of having uniform rules (e.g. UCC) is that all the companies know exactly what to expect and how to act. Certainty decreases risk, and less risk reduces costs.

Explanation:

In the US, the vast majority of firms use US GAAP as their accounting method, but around the world the IFRS method is used.

Physical asset valuation is the process of determining the value of your physical assets including P, P & E, and also inventories.

  • When valuing inventories IFRS uses FIFO, while US GAAP allows FIFO, LIFO or weighted average costing methods. US GAAP also values inventory at lesser of cost or market value, while IFRS values inventory at lesser of cost or net realizable value.
  • US GAAP uses the cost method to determine the historic cost of an asset, while IFRS uses basically the same method but does not include all the costs of location of the assets (e.g. cost of removing or clearing a facility).
  • US GAAP recognizes non-monetary exchanges while IFRS doesn't.
  • IFRS also allows the cost of asset to be revalued, which can result in unrealized gains or losses. The US GAAP only considers historic costs.
  • There are also other minor differences regarding depreciation, disposals and impairment rules.

Research and development must be expensed right away under US GAAP, while IFRS basically requires the same, it allows some capitalization of development expenditures if certain criteria is met (technical feasibility is achieved).

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4. The national average utility cost is $270. 48 per month. If the average electric bill is 44. 9% of the total amount and the a
den301095 [7]

The cost of using utilities such as water, heating, electricity, waste disposal, and sewage is known as utility expense. Expenses are incurred throughout the reporting period, computed and accumulated for, or payment is made.

Option A is the correct answer, the average power bill in Orlando is $138. 66, which is $17. 21 higher than the national average.

<h2>Step-by-step explanation:</h2>

44.9&#10;&#10; % \text{of} 270.48 = 0.449(270.48) = 121.45.&#10;

44.9 % \text{ of } 308.83 = 0.449(308.83) = 138.66.&#10;&#10;&#10;

<h3>The cost of the Orlando bill:</h3>

138.66-121.45 = 17.21 higher than the national average.

So, the average Orlando eclectic bill is $138.66. This is $17.21 greater than the average electric bill in the United States.

For more information about the national average, refer below:

brainly.com/question/8212077

4 0
2 years ago
In a _____ plant strategy, plants have the flexibility and capability to produce a range of products. This leads to greater resp
ExtremeBDS [4]

Answer:

The correct answer is general-purpose.

Explanation:

When it comes to general-purpose plant strategies, it allows plants to be more flexible than usual and produce a whole variety of products, instead of just focusing on one or few products. This way, plants can diversify easily and cater to their clients' needs and be far more productive and successful.

8 0
2 years ago
Up-Town Express processed 89,233 packages this month. If this is 36.5% less than last month, how many packages did they process
solniwko [45]

Answer:

X=140.524.4≅140,524 Packages

Correct option is C (140,524)

Explanation:

Given Data:

Up-Town Express processed =89,233 packages this month

Less than last month=36.5%=0.365

Required:

Packages did they process last month=?

Solution:

Let say X is the number of Packages they process last month.

Equation from above data:

89233+0.365X=X

89233=X-0.365X

0.635X=89233

X=89233/0.635

X=140.524.4≅140,524 Packages

Correct option is C (140,524)

4 0
3 years ago
Which of the following statements are reasons why operations management is important?
mafiozo [28]

Answer: D. All of these are reasons why operations management is important.

Explanation: Operation management is concern with converting materials and labor efficiently into goods and services for profit maximization. It is the administration of business principles in creating the highest level of efficiency within an organization.

Efficient and productive operation drives the economic well being of nations, Operations management is responsible for much of the value created by organizations and a key source of competitive differentiation among firms, are reasons why operation management is important.

7 0
2 years ago
Kenneth, a food blogger, is paid a handsome fee by a new restaurant to write an article about it. The assignment came with a rid
Lina20 [59]

Answer:

Sense of independence

Explanation:

Basically Kenneth is writing a draft and signing it. The client, will probably change some (if not most) of Kenneth's article, specially any part where Kenneth might criticize the restaurant's service or exaggerate any good service provided by the restaurant. The content of the article itself will be determined by the client.

Kenneth should be independent and impartial when writing an article critique, since writing what the restaurant wants is simply advertising. Sadly this is very common on certain industries, that is why all the movies are excellent or the best of all times, no matter how bad they are.  

8 0
3 years ago
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