Mod 11 Wrong Answers Flashcards
An entity’s cash flows are expected to change significantly if…
The configuration of cash flows received differs significantly
From configuration of cashflows of asset transferred
A nonmonetary exchange is recognized at fair value for assets unless…3
1 fair value is not determinable
2 exchange transaction is to facilitate sales to customers
3 exchange transactions lack commercial substance
For purposes of Nonmonetary exchanges, the configuration of cash flows includes…3
1 risk
2 timing
3 amount of cashflows of the assets
In determining cash flows from a transaction, the effect of taxes is…
Not considered unless it serves a legitimate business purpose
Other than tax avoidance
Sum of years digits method (SYD) for one year?
2) what are you calculating over multiple years?
Denominator =[n(n+1)]/2, where n is useful life
Remaining useful life/denominator - (HC - SV)
2) accumulated depr.
Double declining balance of depreciation calculation
(1/useful life) x 2 x (HC - A/D)
Losses associated with long lived assets, which are to be disposed of are to be reported as…
A component of income for continuing operations before income
Taxes
Discontinued operations result from…
Disposal of a separate business component
A development stage enterprise shall issue the same basic financial statements as an established operating enterprise, but shall…
Disclose certain additional information
A development stage enterprise’s income statement should show…2
1 revenues and expenses for each period covered
2 include cumulative amounts from enterprise’s inception
Under IFRS, the revaluation model for property, plant and equipment, there is no rule for…
The frequency or date of revaluation
When the revaluation method is used for reporting property, plant and equipment under IFRS, any gain or loss is recorded in…
Revaluation surplus account classified as other comprehensive
Income
Under IFRS, using the revaluation method, a piece of equipment used in production was sold, what happens to the $20,000 of revaluation surplus?
The $20,000 of revaluation surplus should be transferred to
Retained earnings
IFRS:
under the revaluation model, when an asset is revalued…
The entire asset class of PPE to which the asset belongs is Revalued
Revaluation surplus is presented in…
Comprehensive income, not profit or loss
