Question
Why must analysts adjust multinational peers for IFRS vs US GAAP differences before comparing ratios?
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Answer
To make comparisons apples-to-apples.
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Question
How can IFRS capitalization of qualifying development costs affect short-term profitability versus US GAAP?
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Answer
It usually raises current income and assets.
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Question
A company capitalizes development costs once technical feasibility and intent to complete are demonstrated. Which framework fits this treatment?
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Answer
IFRS.
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Question
If both research and development costs are generally expensed as incurred, which framework is being applied?
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Answer
US GAAP.
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