Accounting Alternatives

Question: Determine accounting alternatives for intangibles. There are a number of differences between IFRS and U.S. GAAP for the treatment of intangible assets and impairments. The information related to intangible assets in IFRS is presented in IAS 38 (Intangible Assets) and IFRS related to impairments is found in IAS 36 (Impairment of Assets). Answer: There are some key differences between principles of U.S. GAAP and IFRS for treatment of intangible assets. Some are following in the nature (Bellandi, 2012). U.S. GAAP IFRS The cost is mainly incu rred for the development and maintenance of the intangible assets which are recognized like a expense at the time its incurred except the cost which are included in the development of the software, website development etc. All the internally developed intangible assets are mainly recognized if there are some benefits related to the economic criteria which gives the benefits of the assets with the flow at the entity, also the total asset cost are reliably measured and also the overall cost of the intangible assets are met with the certain given criteria of intangible assets . Intangible assets which are mainly measured the historical cost which is excluded the accumulated amortization and the assets impairments. The revaluation of the intangible asset is not permitted rather than assets impairment activities (Jerman Manzin, 2012). The intangible assets might be taking into consideration for the historical cost which is excluded accumulated amortization and the assets impairment activities. The revaluation of the intangible asset is to be permitted is according to the several priority situations. The revaluation activities related to the intangible assets is related to the initial recognition of the value which is not permitted and the carries the value of the assets which is excluded the accumulated amortization and the impairments activities of the intangible assets The intangible cost model which is commonly used in the accounting of the intangible assets which is mainly containing same features like U.S. GAAP but at certain priority it is changes. Reference Bellandi, F. (2012).The handbook to IFRS transition and to IFRS U.S. GAAP dual reporting. Chichester, West Sussex: John Wiley. Jerman, M., Manzin, M. (2008). Accounting Treatment of Goodwill in IFRS and US GAAP.Organizacija,41(6). doi:10.2478/v10051-008-0023-5