Question

A company that prepares its financial statements according to International Financial Reporting Standards (IFRS) must calculate amortization of capitalized software development costs in the same way as under U.S. GAAP.

a) true
b) false

Answer 1

Answer: False

Step-by-step explanation:

The accounting standards that a company follows must be the same. A company using IFRS for preparation of financial statements can not use GAAP for calculation of any head of financial statements. It must calculate amortization of capitalized software development cost as per rules of IFRS.