Tactical HR: Turning Employee Experience Into Financial Strategy
Lgv
1. GAAP vs. IFRS Course: Accounting 211 Instructor: Jeanne Neil Prepared by: Lucy Vu, SevincSenturk, Eunhee Lee, Jose Bustos OCC – 05.18.2011 OCC – 11.15.2010
2.
3.
4.
5. IFRS Criteria for Capitalizing Development Costs a)technical feasibility of completing the intangible asset so that it will be available for use or sale. (b) its intention to complete the intangible asset and use or sell it. (c) its ability to use or sell the intangible asset. (d) how the intangible asset will generate probable future economic benefits. Among other things, the entity can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset. (e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset. (f) its ability to measure reliably the expenditure attributable to the intangible asset during its development. (Group Note: I got this from the IFRS website, it’s wordy so we may just want to brief over it or remove it completely but I think we should probably make a mention of it)
6. Capitalizing R&D - IFRS What to capitalize 1. costs of materials & services used or consumed in generating the intangible asset 2. costs of employee benefits arising from the generation of the intangible asset 3. fees to register a legal right 4. amortization of patents & licenses that are used to generate the intangible asset What not to capitalize 1. selling, administrative & other general overhead expenditures unless the expenditures can be directly attributed to preparing the asset 2. identified inefficiencies and initial operating losses incurred before the asset achieves planned performances 3. expenditure on training staff to operate the asset
