Question
Under IFRS, how are research costs treated?
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Answer
They must always be expensed.
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Question
Under IFRS 15 and ASC 606, what must exist before revenue can be recognized from a customer arrangement?
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Answer
A valid contract with enforceable rights and probable collection.
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Question
Compared with capitalization, how does immediate expensing typically affect current-period CFO?
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Answer
Higher CFO from the tax benefit.
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Question
If a firm capitalizes a cost instead of expensing it immediately, what is the current-period effect on income and assets?
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Answer
Income is higher and assets are higher.
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