Deck13 Flashcards
Under IFRS, what is an SME?
A small or medium sized business(with a couple stipulations)
IFRS for SME’s is what basis of accounting? Accrual or Cash
Accrual
What are some examples of OCBOA’s?
Cash Basis, Modified Cash Basis, Income Tax Basis
Under IFRS for SME’s, which cost assumption valuation method can be used for Inventory? FIFO, LIFO, Weighted Average
FIFO and Weighted Average
Under IFRS for SME’s, should goodwill be amortized?
Yes
Would extraordinary gains appear on an Income Statement under IFRS (not for SME’s)?
Yes, but not as “Extraordinary” under IFRS
IFRS requires a Statement of Financial Position. What are the required classifications?
Current and Noncurrent Assets and Liabilities. (Noncurrent is the default category)
How is an overdrawn account reported on the balance sheet?
As a Current Liability
Under the direct write off method, write offs are credited directly to _____________________________.
Accounts Receivable
What is “Risk of Accounting Loss on Accounts Receivable” (Credit Risk)?
The amount of loss you would suffer if those who owe you money don’t pay it
Off Balance Sheet Risk is:
The amount of risk that does not show on the balance sheet (if all of the risk shows on the balance sheet [Allowance for doubtful Accounts] then the Off Balance Sheet Risk is 0.
Allowance for Doubtful Accounts Increases (under the Allowance Method) when:
Estimated Uncollectible Accounts are recognized
For IFRS, when calculating inventory carrying cost, is Replacement Cost relevant?
No
Can interest be capitalized after an asset is placed in service?
No
What amount of interest is Capitalized Interest (on an Asset being built) limited to?
The interest that would have been avoided had the construction no occurred.
The amount of interest to be capitalized is the lesser or the ____________interest or ______________ interest.
Actual, Avoidable
For Capitalizing Interest on Construction Loans, the “Specific Interest Method” uses:
Interest on construction loans first, and then remaining debt
For Capitalization of Interest on Construction Loans, the “Weighted Average method” uses:
Interest rate on the average for all debt incurred by the firm.
