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.

Question

Quizplus · Accepted Answer

U.S. GAAP generally requires expensing of all research and development costs, but IAS 38 allows capitalization of development costs if certain criteria are met.

How Does IAS 38 (Intangible Assets) Differ from U