51. When an entire business is purchased, goodwill is the excess of cost over the book value of the net assets acquired.
52. Development costs incurred after technological feasibility has been achieved are charged to an expense account.
53. The cost of a patent should be amortized over its legal life or useful life, whichever is shorter.
54. The balances of the major classes of plant assets and accumulated depreciation by major classes should be disclosed in the statement of financial position or notes.
55.The asset turnover ratio is calculated as total sales divided by ending total assets.
56.Franchises can be classified as a property, plant, and equipment item or as an intangible asset.
57. U.S. GAAP requires companies to use component depreciation for assets which qualify for the treatment.
58. U.S. GAAP requires companies to expense all research and development costs as incurred.
59. Gains on exchanges of assets when the exchange has commercial substance are recognized under both IFRS and U.S. GAAP.
60. Changes in depreciation method under IFRS are reported in current and future periods, but under U.S. GAAP such changes are treated as prior period adjustments.