Determine the impact research and development costs have on Services Ltd in 2018 and 2019 income under (1) IFRS and (2) U.S. GAAP. Summarize the difference in income, total assets, and total shareholders’ equity related to Product A over its five-year life under the two different sets of accounting rules.
Services Ltd incurred research and development costs of $10 million on a project to develop product A in 2018. The research phase can be clearly distinguished from the development phase of the project. Total costs in the research phase are $6 million, and in the development phase total costs are $4 million. All of the IAS 38 criteria have been met for recognition of the development costs as an asset. Product A was brought to market in Year 2019 and is expected to be marketable for five years. Total sales of Product A are estimated at more than $100 million.
Required:
COULD YOU SHOW THE ANSWERS IN A TABLE IN NUMBRER FORMAT, AS THE PREVIOUS ANSWER WAS IN WRITTEN FORMAT BUT I NEED TO SHOW THE DIFFERENCE OF THE INCOME ASSETS AND SHAREHOLDERS EQUITY IN NUMBERS
FOR E.G
income
| YEAR 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| US GAAP | |||||
| Research and devleopment | $10,000,000 | 0 | 0 | 0 | 0 |
| IFRS | |||||
| Research and development | $10,000,000 | ||||
I need 3 tables for part 2 like the one above, one for income, one for assets and one for shareholder equity
COULD YOU ANSWER NUMBER 2 AS I HAVE ALREADY ANSWERED 1
QUESTIONS THAT NEED ANSWERING
- Determine the impact research and development costs have on Services Ltd in 2018 and 2019 income under (1) IFRS and (2) U.S. GAAP.
- Summarize the difference in income, total assets, and total shareholders’ equity related to Product A over its five-year life under the two different sets of accounting rules.
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