BU527 Lecture Notes - Lecture 4: Special Purpose Entity, Revenue Recognition, Ias 39
Document Summary
Case questions: fiat group"s first-time adoption of ifrs. The first accounting policy pertains to research and development this is because one of fiat group"s primary operations focuses on manufacturing automobiles, specifically passenger vehicles, tractors, agricultural equipment, and light commercial vehicles. As a result, the company heavily relies on research and development to generate new models across the range of brands that it owns including, fiat, alfa romeo, lancia, When developing new ideas for automobile models, fiat group needs to take several factors like innovation, technology, style and originality into consideration so that way maximum consumers" needs are addressed. The fiat groups second accounting policy pertains to sales. It is vital for fiat group to implement accounting policies that portray sales in a promising manner. Fiat groups account policies that are affected by the adoption of ifrs include: According to italian gaap, research and development costs may be capitalized or instead charged to operations when they are incurred.
