USGAAP and iGAAP Essay Example | Topics and Well Written Essays - 500 words

USGAAP and iGAAP - Essay lessonThere is a similarity between both the US GAAP and iGAAP, regarding the treatment of the impairment of assets that are held for disposal (Ochoa, 2010). Under both accounting methods, the impairment of the assets that is held for disposal is to be treated as the balance between the assets carrying amount, and the assets fair value. This difference becomes the amount of the loss of value of the asset, which is to be treated as expenditure.The opposite similarity in the treatment of intangible assets is in the treatment of intangible assets acquired through business combination, particularly when such(prenominal) intangible assets can be treated as different from the goodwill. The differentiation in such assets exists, if such assets can be transferred, licensed, rented, or exchanged (McClenahen & Jusko, 2002). Under both the US GAAP and iGAAP, such asset should be treated as normal business assets.There is a major dissimilarity in the treatment of expenditure in research and discipline, under both the US GAAP and iGAAP. The US GAAP requires that all the expenditure that is incurred in the generation of internal intangibles to be factored in, as expenditure (Crovitz, 2008). Therefore, some(prenominal) costs involved in research and development is to be treated as expenditure, under US GAAP. However, the case is different under the iGAAP, which provides that there should be a distinction between the research expenses and the development expenses. The argument is that, the cost incurred in research has no certainty of generating future economic value, and thus it should be treated as expenditure (McClenahen & Jusko, 2002). On the other hand, all the costs incurred in development, which could lead to the generation of future income benefits, such as the development of brand value, should be treated as capital expenditure, and thus placed under capital (Ochoa, 2010).While both US GAAP and iGAAP treat the assets acquired