Deck28 Flashcards
Are all contracts financial instruments?
No
For Financial Instruments, whether recognized or unrecognized, disclosure is required when?
It is practicable to estimate those values.
Startup cost and organizational costs are ___________.(a) Capitalized (b)Expensed as incurred
(b)Expensed as incurred
Dividends in arrears are (a)Recognized (b)Footnoted
(a)Footnoted only
Can impairment losses be recovered under GAAP?
No
Under IFRS, an entity that acquires an intangible asset may use the revaluation model for the subsequent measurement when?
If an active market exists for the intangible asset.
When are gain contingencies recognized? (e.g. winnings in a lawsuit)
When the contingency is removed (i.e. - when the lawsuit winnings are collected)
When are gain contingencies recognized? (e.g. winnings in a lawsuit)
When the contingency is removed (i.e. - when the lawsuit winnings are collected) - Gain contingencies are a Note Disclosure only.
The IFRS equivalent of a contingent liability is a:
Provision
Under GAAP, to Accrue a Contingent Liability, the outcome must be Probable. What must it be under IFRS?
More Likely than Not
In computing EPS, are stock splits calculated on a weighted average?
No, they calculated as if they happened at the beginning of the year.
Are Estimated Disposal Gains Recognized?
No, only Estimated Disposal Losses
Is troubled debt restructuring considered and Extraordinary Item?
No
A transaction that is Unusual OR Infrequent should be reported how?
As a Component of IFCO NOT net of taxes.
For Currency, a direct quote states what?
The domestic price of one unit of foreign currency
Foreign currency transactions may be used to (a) Hedge Rick (b) Speculate (c) Both
(c) Both
Which or Both could be a Foreign Currency Transaction?
Operating Transactions, Foreign Exchange Contract Transactions
Both
Would a foreign currency options contract be likely to produce a loss?
No, because the Option would not likely be exercised if it produced a loss.
Are Foreign Currency Options contracts considered “Forward Contract” for Accounting Purposes?
Yes
Which of these two firm commitments denominated in a foreign currency can be hedged? (a) Firm Purchase Commitments (b) Firm Sales Commitments (c) Both
(c)Both
A hedge to offset the risk of a Planned Transaction would be classified as the hedge of : Firm Commitment or Forecasted Transaction
Forecasted Transaction
