Quiz 11.49 – T/F Rare Use of Component Depreciation by U.S. Companies under IFRS
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
While permitted under IFRS, U.S. companies seldom utilize component depreciation.
While permitted under IFRS, U.S. companies seldom utilize component depreciation.
True or false, the method of depreciation should be both systematic and rational.
Capitalized software development costs must be amortized using the same method under both International Financial Reporting Standards (IFRS) and U.S. GAAP.
International Financial Reporting Standards (IFRS) require biological assets to be measured at fair value less estimated selling costs.
IFRS mandates that an impairment loss for property, plant, and equipment should be recognized only when the carrying amount of the asset exceeds the undiscounted cash flows expected to be generated by the asset.
The impairment loss for an indefinite-life intangible asset (excluding goodwill) is the excess of the asset’s carrying value over its recoverable amount, as per IFRS.
IFRS mandates capitalizing and amortizing costs related to the successful defense of intangible rights.
Sum-of-the-years’-digits depreciation is equivalent to MACRS (Modified Accelerated Cost Recovery System) depreciation.
Under the replacement depreciation method, depreciation is recorded upon asset replacement.
What are the factors required to calculate depreciation, as per the given options?