Question 1

Why would an oil company argue to use the full-cost method of accounting for oil and gas exploration costs?

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Question 2

How are assets valued when they are acquired by issuing stock?

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Question 3

Why are software development costs treated differently than other types of R&D?

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Question 4

What disclosures are required relative to interest costs incurred during the year?

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Question 5

Briefly explain how R&D is reported in financial statements.

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Question 6

Briefly explain the differences between U.S. GAAP and International Financial Reporting Standards (IFRS) in accounting for government grants for the purchase of assets.

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Question 7

Briefly explain the differences between U.S. GAAP and International Financial Reporting Standards (IFRS) in accounting for research and development expenditures other than software development costs.

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Question 8

When is interest capitalized? Briefly describe how the amount to be capitalized is computed.

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Question 9

It's not unusual for one company to buy another company in order to obtain technology that the acquired company has developed or is in the process of developing.
Required:
Explain the accounting treatment of purchased technology.

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Quiz 10: Property, Plant, and Equipment and Intangible Assets: Acquisition