IFRS

Question 1

pension difference

Answer 1

components are reported separated on p& L. under gaap one amount on the income statement. prior service increases DBO on the income statement. under GAAP reported in OCI and amortized

Question 2

under IFRS, if the company uses the FV method for accounting for an investment any changes in FV are recognized?

Answer 2

profit and loss, a gain in current earnings.

Question 3

Revaluation model method when an asset’s fair value can be reliably measured

Answer 3

hen the carrying value of the assets differs materially from the fair value of the assets, a revaluation must occur, with any increase being included in asset revaluation surplus, an equity account, like other comprehensive income, and a decrease being accounted for as an other loss included in income from operations.

Question 4

Incorrect
The International Financial Reporting Standards (IFRS) apply an easier lower of cost or net realizable value rule. Here, net realizable value is less, so it is used ($6.00). true or false

Answer 4

true

Question 5

footnotes disclosure difference between IFRS and GAAP

Answer 5

IFRS requires more footnote disclosure, because it s principle based.

Question 6

Under IFRS, which of the following statements about intangible assets is correct?

Answer 6

Internally generated goodwill cannot be recognized as an asset.

Question 7

under IFRS, a description of the internet controls put in place to prevent the occurrence of the error in the future periods is a disclosure requirement related to the correction of a material prior-period error? T/F

Answer 7

false,

Question 8

under IFRS, investment property must be held to earn reantls or for capital appreciation (or both).

Answer 8

It cant be used in the production or supplies of goods or services, held for administrative purposes, or held for sale in the ordinary course of business

Question 9

The categories of assets, liabilities, and stockholders’ equity are quite similar within U.S. GAAP and IFRS (International Financial Reporting Standards). However, IFRS statements may present property, plant, and equipment first in the balance sheet.

Answer 9

true

Question 10

Packet Corp. is in the process of preparing its financial statements for the year ended December 31, 20X1. How would a gain on remeasuring a foreign subsidiary’s financial statements from the local currency into the functional currency that occurred during 20X1 be classified in these financial statements?

Answer 10

Income from continuing operations, with separate disclosure (either on the face of statement or in the notes)

Question 11

The FASB has jurisdiction over entities with which of the following characteristics

Answer 11

Exempt from federal taxation

Question 12

a primary government

Answer 12

It has a separately elected governing body.
It is legally separate.
It is fiscally independent of other state and local governments.

Question 13

should method of determining which assets are considered to be cash equivalent be disclosed?

Answer 13

yes, it is a significant accounting policy

Question 14

interest expense and revenue and dividend revenue are all viewed as operating activities under US GAAP, dividends paid are classified as a financing activities

Answer 14

under IFRS< interest expense and dividents paid can be reported as either operating activities or as financing activities.