Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

FAR > IFRS > Flashcards

IFRS Flashcards

1
Q

Under IFRS, how are the two part of compound instruments divided?

A

The liability component is initially recognized at fair value
The equity component is recognized at the residual amount

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Under IFRS, where is interest paid appear on the cash flow statement?

A

Either in operating activities or financing activities.

If it is a financial institution, interest paidis a normal business activity and is operating

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Under IFRS, where are the receipt of interest or cash dividends classified in the cash flow statement?

A

Either an operating activity or investing activity.

(If it is a financial institution, interest received is a normal business activity and is operating)

*Wiley page 700

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Under IFRS, where are interest and dividends paid classified in the statement of cashflows?

A

Either operating or financing

(Operating activity by a financial institution)

*Wiley page 700

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Between IFRS and GAAP, how are negative cash balances treated?

A

GAAP: Negative cash balance is current liabilty

IFRS: Negative cash balance is negative cash equivalent

*Roger 25.08, Page 25-15

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

With the Direct Method (IFRS), what are the sections in the Operating Section of the Cash Flow Statement?

A 
Cash receipts from customers
Cash paid to suppliers
Cash paid to employees
Cash paid for other operating expenses
Interest paid
Income taxes paid

*Is similar to GAAP, but G&A and selling are not specifically broken out

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What kind of asset or liability is created by deferred taxes under IFRS?

A

All deferred tax liabilities are non-current, unlike GAAP which recognizes them as current and non-current.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Does IFRS use a valuation allowance for deferred taxes?

A

No. Deferred taxes are recognized only when reasonably assured of realization and only to the extent it is probable they will be realized.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Under IFRS, if two future tax rates are shown for the same coming year, which one should be used?

A

The one that is known to be the effective coming rate. This is the case even if the rate changes after the income statement date but before issuance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Under IFRS, how are deferred assets and liabilities netted?

A

IFRS nets deferred assets and liabilities as long as they come from the same taxing authority.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What model does IFRS use to value PPandE?

A

plant, property, and equipment to be valued using the cost model or the revaluation model

IFRS does not provide requirements as to the frequency or date of revaluation of plant, property, and equipment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Under IFRS, how often is PPandE revalued with the Revaluation Model?

A

IFRS does not provide requirements as to the frequency or date of revaluation of plant, property, and equipment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Under IFRS, under the revaluation method where are gains in PPandE recorded?

A

A revaluation surplus account in other comprehensive income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Under IFRS, what valuation model should be used to report PPandE?

A

The cost model or the revaluation model.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a key depreciation difference in IFRS?

A

They use coponent depreciation where each major part of the asset is depreciated sepearately.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Under IFRS Revaluation Method, where do changes in fair value of the asset get recorded?

A

Gain above historical cost go to OCI; Decreases below historical cost go to I/S

If an asset has fallen below historical cost, but increases in value. Increases up to historical cost go on I/S and any gains above historical cost go to OCI.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Under IFRS, where are impairment losses recorded?

A

If Cost Model, is recorded in Profit or Loss Statement
If Revaluation Model, is recorded as revaluation decrease with affects going to OCI until it dips below historical cost. Amounts below historical cost go to P/L

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Which two models does IFRS use to record Investment Properties?

A

Cost Model or Fair Value Model.

FVM: No depreication and is written up or down with affects appearing on P/L

Cost Model: Recorded are initial cost less depreciation. However fair value must be disclosed.

19
Q

Under IFRS, how are biological asset measured?

A

At Net Realizable Value; Fair Value less cost to sell at harvest.

20
Q

Which contract method is preferred by GAAP and IFRS

A

Percentage of Completion Method

21
Q

What alternative name does IFRS use for the Percentage of Completion Method?

A

Stage of Completion Method

22
Q

Which contract method is not allowed under IFRS?

A

Completed Contract Method

23
Q

Under IFRS, what method is used if the percentage of completion method cannot be used?

A

Cost Recovery Method

24
Q

Under IFRS, what four items are necessary to recognize revenue under a contract?

A

The amount of revenue can be measured reliably

The costs incurred and to complete the transaction can be measured reliably

It is probable that economic benefits will flow to the entity

The stage of completion can be measure reliably at the end of the reporting period

25
Q

How does segment reporting under IFRS differ from GAAP?

A

IFRS 8 is very similar to US GAAP in that a company still uses the management approach and applies the same 3 thresholds. The 75% rule also still applies.

26
Q

Under IFRS, the following two occur when bonds are recognized using Fair Value Through Profit of Loss:

A

The liability is adjusted to its fair value on each reporting date
Any increae or decreae in fair value is recognized in profit or loss

27
Q

In IFRS, how is inventory valued for cost?

A

LCNRV (Lower of Cost or NRV). The lower of Cost or NRV are used to value the inventory

*Cost is the Historical Costs. Replacement Costs are not considered.

28
Q

In IFRS, what is the GAAP inventory method that is not allowed under international standards?

A

LIFO

29
Q

Does IFRS allow for inventory that has been previous written down to be written back up?

A

IFRS allows recoveries in the value of inventory when the NRV increases after inventory has been written down.

30
Q

An asset under IFRS is only recognized as goodwill when?

A

It is acquired by purchase

31
Q

Which of the following is considered investment property for entities preparing financial statements using IFRS?

A

Land held for future use.

Land or building held to earn rentals or capital appreciation

32
Q

Under IFRS reporting, how is presentation currency defined?

A

The currency in which financial statements are presented.

33
Q

For IFRS reporting purposes, currencies are defined as the three following types:

A

Foreign, functional, and presentation.

34
Q

For IFRS reporting, if the functional currency is the same as the presentation currency, any translation gains or losses are generally reported as:

A

A gain or loss on the statement of income.

35
Q

How is an impairment loss for PPandE decided in IFRS

A

CV>Net Recoverable Amount = Impairment loss

Net Recoverable Amount = The greater of FV minus costs to sell, or its value in use (PV of cash flows expected from asset)

36
Q

Under IFRS, under what conditions could a company reclassify a note payable from current to non-current?

A

If has executed an agreement to refinance the note before the statement of financial position date.

37
Q

Under IFRS, specific identification accounting for inventory is required for?

A

Inventory that is not interchangeable.

38
Q

According to the IASB Framework, the two criteria required for incorporating items into the income statement or statement of financial position are that

A

It meets the definition of an element and can be measured reliably

39
Q

Under IFRS, What are the methods used to account for Treasury Stock?

A

Cost Method, Par Method, and Constructive retirement method.

40
Q

How is the loss from discontinued operations calculated?

A

(CV of disposed segment - Net Realizable value from disposed segment) + loss from current period’s operations

41
Q

In IFRS, what method is used to account for defined pension benefit plans?

A

Projected-unit-credit method.

42
Q

What are the three hedges under IFRS?

A
  • Cash Flow Hedges
  • Fair Value Hedges
  • Hedges of Net Investments in Foreign Operations
43
Q

How are Hedges for Net Investments in Foreign Operations accounted for in IFRS?

A

As a cash flow hedge. Gains/losses go to OCI.

FAR (34 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions