12 • 6
InternationalTheAllowedUnited StatesJapanUnited KingdomFranceGermanyNetherlandsSwitzerlandCanadaItalyBrazilBenchmarkAlternativeCapitalization ofNot allowedAllowed inAllowed inAllowed inNot allowedAllowed inAllowed inAllowed inAllowed inAllowedRequired inNoneresearch andcertaincertaincertaincertaincertaincertaincertaincertaindevelopmentcircumstances circumstancescircumstancescircumstances circumstances circumstances circumstancescircumstancesFixed assetNot allowedNot allowedAllowedAllowedNot allowedAllowed inAllowed inNot allowedRequired inAllowedNot allowedAllowedrevaluation statedcertaincertaincertainat amount incircumstances circumstancescircumstancesexcess of costInventory valuation AllowedAllowedAllowed butAllowedAllowed inAllowedAllowedAllowedAllowedAllowed but Not allowedAllowedusing LIFOrarely donecertainrarely donecircumstancesFinance leasesRequiredAllowed inRequiredAllowedAllowed inRequiredAllowedRequiredNot allowedAllowed inRequiredNonecapitalizedcertaincertaincertaincircumstancescircumstancesPension expenseRequiredAllowedRequiredAllowedRequiredRequiredAllowedRequiredAllowedAllowedRequiredNoneaccrued duringperiod of serviceBook and taxRequiredAllowed inRequired inRequiredAllowed inRequiredAllowedRequiredGenerallyRequiredAllowedNonetiming differencescertaincertaincertainrequiredpresented on thecircumstances circumstancescircumstancesbalance sheet asdeferred taxCurrent rateRequired forGenerallyRequiredRequired forAllowedRequired forAllowedRequired forRequiredRequiredRequired forNonemethod used forforeignrequiredself-sustainingself-sustainingself-sustainingself-sustainingforeign currencyoperationsforeignforeignforeignforeigntranslationwhoseoperationsoperationsoperationsoperationsfunctionalcurrency isother thanthe reportingcurrencyPooling methodRequired inAllowedRequired inNot allowedAllowed inAllowed butAllowed butAllowed inAllowed inAllowed but Required inNoneused for mergerscertaincertaincertainrarely donerarely donerarerarerarely donecertaincircumstancescircumstancescircumstancescircumstances circumstancescircumstancesEquity methodRequiredRequiredRequiredRequiredRequiredRequiredAllowed inRequiredAllowedRequiredRequiredNoneused for 20–50%certainownershipcircumstancesExhibit 12.2.Comparative Analysis of Accounting Differences Around the World.