Question 1

Which of the following is not an authoritative pronouncement of International Financial Reporting Standards (IFRSs)?

Accepted Answer

A)  International Financial Reporting Standards issued by the IASB 
B)  International Accounting Standards issued by the IASC and adopted by the IASB 
C)  Interpretations issued by the International Financial Reporting Interpretations Committee (IFRICs) 
D)  International Accounting Principles 
E)  Interpretations issued by the Standing Interpretations Committee (SICs) and adopted by the IASB 
A)  International Financial Reporting Standards issued by the IASB 
B)  International Accounting Standards issued by the IASC and adopted by the IASB 
C)  Interpretations issued by the International Financial Reporting Interpretations Committee (IFRICs) 
D)  International Accounting Principles 
E)  Interpretations issued by the Standing Interpretations Committee (SICs) and adopted by the IASB

Question 2

IFRS for SMEs differ from full IFRS in all of the following ways except:

Accepted Answer

A)  IFRS for SMEs require significantly fewer disclosures. 
B)  Interim period reports need not be prepared when following IFRS for SMEs. 
C)  Recognizing and measuring assets are simplified when following IFRS for SMEs. 
D)  Segment reporting must be provided when following IFRS for SMEs. 
E)  IFRS for SMEs do not require earnings per share to be reported. 
A)  IFRS for SMEs require significantly fewer disclosures. 
B)  Interim period reports need not be prepared when following IFRS for SMEs. 
C)  Recognizing and measuring assets are simplified when following IFRS for SMEs. 
D)  Segment reporting must be provided when following IFRS for SMEs. 
E)  IFRS for SMEs do not require earnings per share to be reported.

Question 3

When measuring assets and liabilities recognized on the opening balance sheet in accordance with first-time adoption of IFRS, the reporting company must:

Accepted Answer

A)  Use its current valuation method and disclose the method in the notes to the financial statements. 
B)  Retrospectively apply applicable IASB standards to each asset and liability reported on the opening balance sheet. 
C)  Prospectively apply applicable IASB standards to each asset and liability reported on the opening balance sheet. 
D)  Recognize the difference in measurement, and disclose it in the notes to the financial statements as a change in accounting estimate. 
E)  Retrospectively apply applicable IASB standards to each asset and liability reported on the opening balance sheet and recognize the amount of change in the income statement. 
A)  Use its current valuation method and disclose the method in the notes to the financial statements. 
B)  Retrospectively apply applicable IASB standards to each asset and liability reported on the opening balance sheet. 
C)  Prospectively apply applicable IASB standards to each asset and liability reported on the opening balance sheet. 
D)  Recognize the difference in measurement, and disclose it in the notes to the financial statements as a change in accounting estimate. 
E)  Retrospectively apply applicable IASB standards to each asset and liability reported on the opening balance sheet and recognize the amount of change in the income statement.

Question 4

All of the following are simplified principles for recognizing and measuring assets, liabilities, income, and expenses for SMEs under IFRS except:

Accepted Answer

A)  Borrowing costs are expensed as incurred. 
B)  All development costs are expensed as incurred. 
C)  Actuarial gains and losses for defined benefit plans may be either recognized immediately or deferred and amortized. 
D)  Goodwill is amortized over its useful life. 
E)  The cost model for property, plant, and equipment must be used. 
A)  Borrowing costs are expensed as incurred. 
B)  All development costs are expensed as incurred. 
C)  Actuarial gains and losses for defined benefit plans may be either recognized immediately or deferred and amortized. 
D)  Goodwill is amortized over its useful life. 
E)  The cost model for property, plant, and equipment must be used.

Question 5

Which of the following is not one of the steps to prepare IFRS statements for the first time?

Accepted Answer

A)  Determine applicable IFRS accounting policies based on standards in force on the reporting date. 
B)  Recognize assets and liabilities required to be recognized under IFRS that were not recognized under previous GAAP. 
C)  Derecognize assets and liabilities previously recognized that are not allowed to be recognized under IFRS. 
D)  Reclassify items previously classified in a different manner from what is acceptable under IFRS. 
E)  Comply with most disclosure and presentation requirements. 
A)  Determine applicable IFRS accounting policies based on standards in force on the reporting date. 
B)  Recognize assets and liabilities required to be recognized under IFRS that were not recognized under previous GAAP. 
C)  Derecognize assets and liabilities previously recognized that are not allowed to be recognized under IFRS. 
D)  Reclassify items previously classified in a different manner from what is acceptable under IFRS. 
E)  Comply with most disclosure and presentation requirements.

Question 6

The major providers of financing in some countries are stockholders, while other countries predominantly use banks as the main financing source. What difference does it make to accounting disclosures in comparing a company from one of each of those countries?

Accepted Answer

When banks dominate financing, there is

Question 7

What problems are caused by diverse accounting practices?

Accepted Answer

(1) Difficulty in preparation of consoli

Question 8

In the 2012 Financial Staff Report issued by the SEC, what were some of the unresolved issues identified that prevented the SEC from requiring IFRS usage?

Accepted Answer

(1) The diversity in how IFRS

Question 9

Teapot, Ltd. is a foreign company that uses IFRS for its financial reporting. Teapot is a wholly-owned subsidiary of Davis Housewares Corp. which is a U.S. company that prepares its consolidated financial statements in accordance with U.S. GAAP. Teapot purchased a piece of equipment for $3,000,000 on January 1, 2020. The equipment has an overall useful life of 20 years and no salvage value. The equipment is comprised of the following three significant components, shown with their associated cost and useful life.   As a corporate policy, Davis Housewares Corp. utilizes the straight-line method of depreciation for machinery and equipment and plans to extend this policy to Teapot, Ltd.Prepare the journal entry for the 2020 depreciation expense for Davis Housewares Corp. based on U.S. GAAP.

Accepted Answer

@#IMG-DLM& $3,000,00

Question 10

What are the steps to be taken in preparing IFRS financial statements for the first time?

Accepted Answer

There are five (5) steps to preparing IF

Question 11

State the two major types of legal systems used around the world and briefly describe their differences.

Accepted Answer

The two major types of legal systems use

Question 12

Which one of the following is not a background or qualification requirement for full-time IASB members?

Accepted Answer

A)  Professional competence. 
B)  Attain 10 years of auditing experience. 
C)  Practical experience. 
D)  Cease holding positions which might call into question their independence. 
E)  Sever relationship with former employers. 
A)  Professional competence. 
B)  Attain 10 years of auditing experience. 
C)  Practical experience. 
D)  Cease holding positions which might call into question their independence. 
E)  Sever relationship with former employers.

Question 13

Which of the following is not a likely step to furthering convergence of FASB and IFRS?

Accepted Answer

A)  FASB adopting an existing IASB Standard. 
B)  IASB adopting an existing FASB standard. 
C)  FASB and IASB issuing an identical standard. 
D)  FASB working with IASB to develop a new standard. 
E)  Realizing that identical standards, rather than similar standards, is not realistic. 
A)  FASB adopting an existing IASB Standard. 
B)  IASB adopting an existing FASB standard. 
C)  FASB and IASB issuing an identical standard. 
D)  FASB working with IASB to develop a new standard. 
E)  Realizing that identical standards, rather than similar standards, is not realistic.

Question 14

What is the IOSCO?

Accepted Answer

The International Organization of Securi

Question 15

Which of the following is not a factor influencing a country's financial reporting practices?

Accepted Answer

A)  Providers of financing. 
B)  Inflation. 
C)  Legal system. 
D)  Gross National Product. 
E)  Political and economic ties. 
A)  Providers of financing. 
B)  Inflation. 
C)  Legal system. 
D)  Gross National Product. 
E)  Political and economic ties.

Question 16

What are the four types of authoritative pronouncements that make up the International Financial Reporting Standards (IFRS)?

Accepted Answer

The four types of authoritative pronounc

Question 17

Which of the following is the organization that governs the IASB?

Accepted Answer

A)  IASC. 
B)  IOSCO. 
C)  UNESCO. 
D)  IFRS Foundation. 
E)  IAS Service. 
A)  IASC. 
B)  IOSCO. 
C)  UNESCO. 
D)  IFRS Foundation. 
E)  IAS Service.

Question 18

Carpenter, Inc., a wholly owned subsidiary of the U.S.-based company, Buildings Ltd., was notified of a loss contingency with an estimated cost ranging between $100,000 and $220,000. Carpenter, Inc. hired an expert appraiser who assessed that all possible dollar amounts of liability in this range are equally likely. Management of Carpenter, Inc. has estimated that there is a 65 percent chance that this contingency will result in an actual loss.According to U.S. GAAP, what is the amount recognized by Carpenter, Inc. as a provision for loss contingency?

Accepted Answer

A)  No amount will be recorded but an amount will be disclosed in the notes to the financial statements. 
B)  $100,000 
C)  $220,000 
D)  $120,000 
E)  $160,000 
A)  No amount will be recorded but an amount will be disclosed in the notes to the financial statements. 
B)  $100,000 
C)  $220,000 
D)  $120,000 
E)  $160,000

Question 19

Which statement is correct as it relates to diverse accounting practices across countries?

Accepted Answer

A)  Gaining access to foreign capital markets is relatively easy and inexpensive once the financial statements are converted to the local currency of the country where the financing is desired. 
B)  U.S. GAAP is acceptable worldwide wherever IFRS has not been adopted. 
C)  To have stock listed on a U.S. stock exchange, all financial statements submitted to the SEC must be prepared either using U.S. GAAP or using IFRS. 
D)  Stock analysts specializing in industry coverage can compare financial statements regardless of various national or international accounting standards used by companies being compared. 
E)  Translating financial statements of various currencies into one common currency for consolidation purposes does not resolve the problem of diversity of accounting practices across countries. 
A)  Gaining access to foreign capital markets is relatively easy and inexpensive once the financial statements are converted to the local currency of the country where the financing is desired. 
B)  U.S. GAAP is acceptable worldwide wherever IFRS has not been adopted. 
C)  To have stock listed on a U.S. stock exchange, all financial statements submitted to the SEC must be prepared either using U.S. GAAP or using IFRS. 
D)  Stock analysts specializing in industry coverage can compare financial statements regardless of various national or international accounting standards used by companies being compared. 
E)  Translating financial statements of various currencies into one common currency for consolidation purposes does not resolve the problem of diversity of accounting practices across countries.

Question 20

What two reconciliations are required by IFRS 1 for first-time IFRS Adopters?

Accepted Answer

(1) Reconciliation of total equity measu

Which of the following is not an authoritative pronouncement of International Financial Reporting Standards (IFRSs)?

IFRS for SMEs differ from full IFRS in all of the following ways except:

When measuring assets and liabilities recognized on the opening balance sheet in accordance with first-time adoption of IFRS, the reporting company must:

All of the following are simplified principles for recognizing and measuring assets, liabilities, income, and expenses for SMEs under IFRS except:

Which of the following is not one of the steps to prepare IFRS statements for the first time?

The major providers of financing in some countries are stockholders, while other countries predominantly use banks as the main financing source. What difference does it make to accounting disclosures in comparing a company from one of each of those countries?

What problems are caused by diverse accounting practices?

In the 2012 Financial Staff Report issued by the SEC, what were some of the unresolved issues identified that prevented the SEC from requiring IFRS usage?

What are the steps to be taken in preparing IFRS financial statements for the first time?

State the two major types of legal systems used around the world and briefly describe their differences.

Which one of the following is not a background or qualification requirement for full-time IASB members?

Which of the following is not a likely step to furthering convergence of FASB and IFRS?

What is the IOSCO?

Which of the following is not a factor influencing a country's financial reporting practices?

What are the four types of authoritative pronouncements that make up the International Financial Reporting Standards (IFRS)?

Which of the following is the organization that governs the IASB?

Which statement is correct as it relates to diverse accounting practices across countries?

What two reconciliations are required by IFRS 1 for first-time IFRS Adopters?

Accounting for Estates and Trusts

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for State and Local Governments, Part II

Accounting for State and Local Governments, Part I

Partnerships: Termination and Liquidation

Partnerships: Formation and Operation

Accounting for Legal Reorganizations and Liquidations

Financial Reporting and the Securities and Exchange Commission

Translation of Foreign Currency Financial Statements

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Segment and Interim Reporting

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements Intra-Entity Asset Transactions

Consolidated Financial Statements and Outside Ownership

Consolidations - Subsequent to the Date of Acquisition

Consolidation of Financial Information

The Equity Method of Accounting for Investments

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Exam 11: Worldwide Accounting Diversity and International Accounting Standards

Which of the following is not an authoritative pronouncement of International Financial Reporting Standards (IFRSs)?

IFRS for SMEs differ from full IFRS in all of the following ways except:

When measuring assets and liabilities recognized on the opening balance sheet in accordance with first-time adoption of IFRS, the reporting company must:

All of the following are simplified principles for recognizing and measuring assets, liabilities, income, and expenses for SMEs under IFRS except:

Which of the following is not one of the steps to prepare IFRS statements for the first time?

The major providers of financing in some countries are stockholders, while other countries predominantly use banks as the main financing source. What difference does it make to accounting disclosures in comparing a company from one of each of those countries?

What problems are caused by diverse accounting practices?

In the 2012 Financial Staff Report issued by the SEC, what were some of the unresolved issues identified that prevented the SEC from requiring IFRS usage?

What are the steps to be taken in preparing IFRS financial statements for the first time?

State the two major types of legal systems used around the world and briefly describe their differences.

Which one of the following is not a background or qualification requirement for full-time IASB members?

Which of the following is not a likely step to furthering convergence of FASB and IFRS?

What is the IOSCO?

Which of the following is not a factor influencing a country's financial reporting practices?

What are the four types of authoritative pronouncements that make up the International Financial Reporting Standards (IFRS)?

Which of the following is the organization that governs the IASB?

Which statement is correct as it relates to diverse accounting practices across countries?

What two reconciliations are required by IFRS 1 for first-time IFRS Adopters?

Accounting for Estates and Trusts

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for State and Local Governments, Part II

Accounting for State and Local Governments, Part I

Partnerships: Termination and Liquidation

Partnerships: Formation and Operation

Accounting for Legal Reorganizations and Liquidations

Financial Reporting and the Securities and Exchange Commission

Translation of Foreign Currency Financial Statements

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Segment and Interim Reporting

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements Intra-Entity Asset Transactions

Consolidated Financial Statements and Outside Ownership

Consolidations - Subsequent to the Date of Acquisition

Consolidation of Financial Information

The Equity Method of Accounting for Investments

Filters