#16 IFRS for SME's

Question 1

Under IFRS for SME’s, which cost flow assumptions are allowed?

Answer 1

FIFO & Weighted Average

*LIFO is prohibited

Question 2

Under IFRS for SME’s, what is important to remember about Earnings per share?

How about segment reporting?

Answer 2

They are not required in the financial statements.

Question 3

Is IFRS for SME’s considered an other comprehensive basis of accounting?

If not, what is it?

Answer 3

It is a form of GAAP that can be used as an alternative to OCBOA by qualified companies.

Question 4

Is goodwill treated the same under IFRS for SME’s as it is for standard US GAAP?

Answer 4

No, goodwill must be amortized.

Question 5

Under IFRS for SME’s, investments must be accounted for using the equity method.

True or False?

Answer 5

False, the equity method or cost method may be used.

Question 6

Under IFRS for SME’s, is interest incurred during contstruction expensed or capitalized?

Answer 6

Expensed

Under U.S. GAAP interest incurred during construction is capitalized as part of the cost of the constructed item