[Verse 1] When companies spend on research today IFRS says expense it right away But development costs can be different friends If criteria met, capitalize and blend US GAAP keeps it simple and clean Expense R and D, that's what they mean Two standards clash on how we account For innovation's true amount [Chorus] IFRS develops, US expends Remember how each standard tends Probable benefits, technical feasible too Six criteria make development through Intangible assets need recognition tests Identifiable, controlled, future benefits blessed IFRS develops, US expends That's how the accounting story ends [Verse 2] Research phase hunting for new knowledge here No asset recognized, the rules are clear Development phase builds upon what's found If six criteria met, capitalize the ground Technical feasibility must be shown Intention and ability to use what's grown Resources available to complete the task Future benefits probable, that's all we ask [Chorus] IFRS develops, US expends Remember how each standard tends Probable benefits, technical feasible too Six criteria make development through Intangible assets need recognition tests Identifiable, controlled, future benefits blessed IFRS develops, US expends That's how the accounting story ends [Bridge] Patents and trademarks, software and brands Identifiable assets in our hands Controlled by entity through legal right Future economic benefits in sight Cost model or revaluation way Choose your measurement at the end of day Amortize finite, test infinite lives That's how intangible accounting thrives [Verse 3] Internally generated goodwill's banned No recognition across either land But purchased goodwill gets a different fate Allocate to units, impairment rate US GAAP allows revaluation never Cost model only, now and forever IFRS gives choice between the two Revaluation model for some will do [Chorus] IFRS develops, US expends Remember how each standard tends Probable benefits, technical feasible too Six criteria make development through Intangible assets need recognition tests Identifiable, controlled, future benefits blessed IFRS develops, US expends That's how the accounting story ends [Outro] Research expensed but development might Capitalize under IFRS light US GAAP expenses both the same Different standards, different game
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