IFRS Differences Flashcards

1
Q

Which inventory method is not allow under IFRS?

A

LIFO

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2
Q

How is the lower of cost or market rule differ in between GAAP and IFRS?

A

Under IFRS, inventories are measured at the lower of cost or net realizable value (NRV).

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3
Q

How is impairment loss test under IFRS?

A
  1. Impairment loss is assess at each report date whether indicator of impairment is exist
  2. IFRS require one step testing.
    Calculation:
    Impairment loss = carrying amount - recoverable amount
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4
Q

Under IFRS, under what condition can Development cost be capitalized?

A

Under IFRS-Development costs my result in recognition if the entity can demonstrate:

1) Technical feasibility
2) Intent to complete
3) Ability to use or sell the assets
4) Probable future economic benefits
5) The availability of resources to complete /sell or use the assets
6) The ability to reliably measure expenditures attributable to the asset

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5
Q

Research Cost

A

Research cost must be expense as it is incurred under IFRS

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