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Unformatted text preview: Elements of Reasoning 1 Elements of Reasoning Bianca Ferguson Phillips Grand Canyon University ACC 616 Michael Maricle From: Bianca Ferguson Phillips To: Daimler Chrysler 8 Elements of Reasoning Purpose: The purpose is to conclude whether Daimler Chrysler is recording transaction in accordance with GAAP and or International Accounting Standards. Issue: the issue is the company wants to register its stock with SEC in order to be listed on the New York Stock Exchange. The research and development (R&D) cost is currently being capitalized. The company is not aware if they are correctly recording the cost. In order to be listed on the NYSE the company needs to know if they are complying with U.S. GAAP and/or International Accounting Standards. Elements of Reasoning 2 Information: GAAP covers pronouncements in respect to R&D cost. The general rule is that the cost is expensed in the time period in which the cost happens. The only standard internationally used, IAS 38, also imply that research cost are expensed when they occur, but the...
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This note was uploaded on 03/20/2012 for the course ACC 616 taught by Professor Shoemake during the Spring '12 term at Grand Canyon.
- Spring '12