Multiple Choice
The problem with a "blanket rule" requiring all expenditure of a particular type to be written off as incurred (e.g.,expenditure on research) ,is:
A) that it is too much like US GAAP.
B) it does not enable readers of financial reports to differentiate between entities that have generated future economic benefits from particular activities and those who have not.
C) it does not enable readers of financial reports to differentiate between entities that have managed their earnings and those who have not.
D) it does not enable readers of financial reports to differentiate between entities that are going to continue to be successful and those who are not.
E) it does not enable readers of financial reports to make their own judgements about the future worth of the entity.
Correct Answer:

Verified
Correct Answer:
Verified
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