Bumble invented and patented a tree-trimming device that is basically a chain saw releasably mounted on the end of a telescoping pole. Bumble sued Hermie for patent infringement after Hermie introduced the Great Pole Saw, a chain saw releasable mounted on the end of a telescoping pole. Hermie showed that an invention such as the one at issue would have been obvious to a person of ordinary skill in the art when the invention was patented. This showing is known as .

Trecek corporation incurs research and development costs of $625,000 in 2017, 30 percent of which relate to development activities subsequent to ias 38 criteria having been met that indicate an intangible asset has been created. the newly developed product is brought to market in january 2018 and is expected to generate sales revenue for 10 years. assume that a u.s.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with ifrs. thus, adjustments to convert from u.s. gaap to ifrs must be made. ignore income taxes. required: (a) prepare journal entries for research and development costs for the years ending december 31, 2017, and december 31, 2018, under (1) u.s. gaap and (2) ifrs. (c) prepare the entry(ies) that trecek would make on the december 31, 2017, and december 31, 2018, conversion worksheets to convert u.s. gaap balances to ifrs.