Is it U.S. GAAP or IFRS? Understanding how R&D costs affect ratio analysis

Turlington, Jean and Fafatas, Stephan and Oliver, Elizabeth Goad,(2019), Is it U.S. GAAP or IFRS? Understanding how R&D costs affect ratio analysis. , Business Horizons, UNSPECIFIED

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While financial reporting standards under U.S. GAAP and IFRS are fundamentally similar, differences do exist that may affect our analysis of company financial statements. This is particularly true when comparing a U.S. company following U.S. GAAP to a firm that uses IFRS. To illustrate, we compare research and development (R&D) accounting methods under both sets of standards and illustrate how they affect the analysis of financial results of firms in a specific industry–—automotive manufacturers. Our results provide insight into settings in which differences in R&D accounting may have the greatest impact on financial analysis.
Keywords : IFRS; U.S. GAAP; Financial statement analysis; Research and development; Accounting for research and development, UNSPECIFIED
Journal or Publication Title: Business Horizons
Volume: 62
Number: 4
Item Type: Article
Subjects: Manajemen
Depositing User: Endhar Priyo Utomo
Date Deposited: 26 Dec 2019 04:18
Last Modified: 26 Dec 2019 04:18

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