[Verse 1] Sarah spends her nights in the lab tonight Testing compounds, chasing breakthrough light Under IFRS rules, her research burns Expensed away, no asset returns But development phase tells different tales When feasibility and profit trails Show technical completion's near Capitalize costs, make assets appear [Chorus] Research burns away, development may stay IFRS splits the phases every day US GAAP says expense them all Unless it's software standing tall Capitalize when coding's done Technological feasibility's won Remember the split, remember the rule Accounting standards are your tool [Verse 2] Tom builds algorithms line by line Software creation, code refined American rules keep spending low Expense research, let those costs go Until the prototype proves it works Technical feasibility lurks Then flip the switch, capitalize costs No more expensing, profits aren't lost [Chorus] Research burns away, development may stay IFRS splits the phases every day US GAAP says expense them all Unless it's software standing tall Capitalize when coding's done Technological feasibility's won Remember the split, remember the rule Accounting standards are your tool [Bridge] Patents purchased, goodwill acquired Intangibles that weren't self-fired External costs get capitalized Internal generation? Often surprised Brands and mastheads built inside Cannot be assets, must subside Only purchased intangibles Make balance sheet compatibles [Final Chorus] Research burns away, development may stay IFRS splits the phases every day US GAAP says expense them all Unless it's software standing tall Six criteria IFRS demands Technical feasibility in your hands Adequate resources, intention clear Then capitalize costs year by year [Outro] When uncertainty clouds your way Think of phases, night and day Research dim, development bright Accounting standards guide your sight
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