1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
babunello [35]
3 years ago
6

Physical asset valuation (PAV) and research and

Business
1 answer:
Bond [772]3 years ago
3 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).

You might be interested in
Cavern Company's output for the current period results in a $5,250 unfavorable direct material price variance. The actual price
lisov135 [29]

Answer:

3,500 pounds

Explanation:

By applying the below formula we get:

AQ(AP-SP)

USD 5,250 (unfavorable price variance )

USD 5,250/(AP - SP) = AQ

So,

USD 5,250/(USD 56.50 - USD 55.00)

= 3,500

4 0
3 years ago
The primary method for sterilizing instruments is
kirza4 [7]
Steam under pressure, dry heat, rubbing alcohol, buying a new one. its important to clean it after each use you might not have what you had yesterday. 
7 0
3 years ago
The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the followi
Elanso [62]

Answer:

the Cash Received from Customers is $548,400

Explanation:

The computation of the cash amount received by the customers is as follows:

Cash Received from Customers is

= Sales + Decrease in Accounts Receivables

= $516,400 + $32,000

= $548,400

hence, the Cash Received from Customers is $548,400

We simply applied the above formula so that the correct value could come

And, the same is to be considered

7 0
2 years ago
Juanita Apparels Inc. outsources its production to contract manufacturers located in underdeveloped nations where unskilled labo
anzhelika [568]
D Low Cost Input Factora
4 0
3 years ago
Read 2 more answers
Statutes that are enacted to protect the public are called licensing statutes. Generally, unlicensed persons cannot recover paym
guapka [62]

Answer:

If a statute is silent on this point, enforcement depends on whether it is a(n) REGULATORY statute or a revenue-raising statute.

Explanation:

Regulatory statutes regulate practitioners, e.g. doctors, constructors, real estate brokers, dentists, etc., and its main purpose is to protect the general public. This statues are state laws meant to regulate certain professions that may be considered sensitive or hazardous. E.g. a person that pretends to be a doctor can severely injure a patient or even kill him/her. A person that pretends to be a real estate broker can be committing fraud against his/her clients.  

8 0
3 years ago
Read 2 more answers
Other questions:
  • The __________ is a listing of all the balance sheet and income-related accounts
    8·1 answer
  • Which organization sets monetary policy for the United States?
    12·2 answers
  • Suppose the economy is initially at potential output and the quantity of aggregate output supplied increases. What information w
    8·1 answer
  • Major American car manufacturers are offering buying incentives to newly graduated college students who traditionally have littl
    12·1 answer
  • on its advertisement, a company claims that it has funds in its possession that are in fact not available for payment of losses
    8·1 answer
  • a. Long-term bonds have fewer risks than short-term bonds. b. Long-term bonds have more risks associated with them, and bring in
    13·1 answer
  • CWN Company uses a job order costing system and last period incurred $70,000 of actual overhead and $100,000 of direct labor. CW
    11·1 answer
  • Monique has held several different positions while attending high school. She has worked in retail sales, as a server at a resta
    13·1 answer
  • Caleb is a bus driver who takes passengers through scenic mountains and points out the various rock formations along the way. Ca
    6·1 answer
  • A(n) ______ team is a group of experienced people from different areas of business who join together to form a managerial team w
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!