Lesson: Differences between IFRS and U.S. GAAP - Practice Questions

In this lesson, Nick Palazzolo, CPA, walks through practice questions related to the treatment of software costs under IFRS and U.S. GAAP, focusing on the critical decision points of capitalization versus expensing. He does this by leveraging a helpful chart and explaining the significance of technological feasibility in these determinations. Nick provides a detailed breakdown of scenarios where costs are incurred during various phases of software development, from feasibility studies to the final release, clarifying when to expense and when to capitalize. He also connects the dots between theoretical concepts and practical applications by examining two case studies that illustrate the real-world implications of these accounting principles on financial statements. Dive in for a concise yet comprehensive examination of software costs and their place within the broader context of research and development reporting.