Accounting related 2 pages memo

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Refer to exercise 1 on page 62 of Accounting & Auditing Research: Tools and Strategies text. Assume the role of a financial consultant asked to research conformity of R&D accounting at Daimler Auto Parts Inc. Write a memo to Daimler Auto Parts, Inc.’s management team responsible for registering the company with the SEC, making sure to cover the following aspects:

  1. Establish purpose for the written communication
  2. Identify applicable guidance over accounting for R&D under IFRS and under U.S. GAAP
  3. Indicate possible consequences for incorrect reporting of R&D costs
  4. Recommend whether or not Daimler Auto Parts Inc. may continue capitalizing most of its R&D costs.
  5. Support your recommendation with a reasonable rationale based on research of authoritative sources.

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