Becker FAR Flashcards
1
Q
Gain (loss) from discontinued operations can consist of…
A
Reported in period incurred.
Impairment loss
Gain (loss) from actual operations
Gain (loss) on disposal
2
Q
In reporting discontinued operations, how is a “component” of an entity defined under U.S. GAAP and IFRS?
A
U.S. GAAP
- Operating segment
- Reportable segment
- Reporting unit
- Subsidiary
- Asset Group
IFRS
- Separate major line of business or geographical area of operations
- Subsidiary acquired exclusively with a view to resale
3
Q
Describe the related party disclosures required under U.S. GAAP and IFRS
A
Material related party transactions
Related party notes/ accounts receivable
Control relationships
Note:
IFRS requires disclosure of key mgmt compensation.
US GAAP does not require this disclosure.
4
Q
What income tax rate is used in interim financial reporting?
A
Use best estimate of effective tax to be applicable for full fiscal year on Quarterly Statements
