INTERMEDIATE ACCOUNTING II: Part 2

Part II
1. Why are software development costs treated differently than other types of R & D?

2. When an investor owns 20% to 50% of the voting stock of an investee company, the investor is presumed to exercise significant influence over the investee unless there is evidence to the
contrary.
What factors could be evidence of significant influence? What factors could be evidence of lack of significant influence?
3.. Please distinguish between tangible operational assets and intangible assets. Provide three examples of each.

4. Briefly differentiate between activity-based and time-based allocation methods.
Describe how the new rule would be tested before being implemented organization-wide.
INTERMEDIATE ACCOUNTING II: Part 2