Question 1

The most recent FASB-IASB convergence projects include:

Accepted Answer

A)  Leases, Research and Development, Revenue Recognition, and Fair Value Measurement. 
B)  Leases, Revenue Recognition, Fair Value Measurement, and Joint Ventures. 
C)  Insurance Contracts, Post-Employment Benefits, Income Taxes and Impairment. 
D)  Insurance Contracts, Income Taxes, Leases, and Revenue Recognition. 
E)  Revenue Recognition, Leases, Insurance Contracts, and Income Taxes. 
A)  Leases, Research and Development, Revenue Recognition, and Fair Value Measurement. 
B)  Leases, Revenue Recognition, Fair Value Measurement, and Joint Ventures. 
C)  Insurance Contracts, Post-Employment Benefits, Income Taxes and Impairment. 
D)  Insurance Contracts, Income Taxes, Leases, and Revenue Recognition. 
E)  Revenue Recognition, Leases, Insurance Contracts, and Income Taxes.

Question 2

A foreign subsidiary of a U.S.-based company has been notified of a loss contingency with an estimated cost ranging between $250,000 and $275,000 which is probable of resulting in an actual loss. Each dollar amount within this range of cost is equally likely of being the actual outcome.According to U.S. GAAP, what is the amount recognized 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)  $25,000 
C)  $250,000 
D)  $262,500 
E)  $275,000 
A)  No amount will be recorded but an amount will be disclosed in the notes to the financial statements. 
B)  $25,000 
C)  $250,000 
D)  $262,500 
E)  $275,000

Question 3

Which of the following statements is false regarding a country's legal system?

Accepted Answer

A)  The two major types of legal systems are common law and codified Roman law. 
B)  Common law originated in the Roman jus civile. 
C)  Code law countries tend to have more statutes governing a wider range of human activity. 
D)  Accounting law is rather general in code law countries. 
E)  A nongovernmental organization is more likely to develop in a common law country than in a code law country. 
A)  The two major types of legal systems are common law and codified Roman law. 
B)  Common law originated in the Roman jus civile. 
C)  Code law countries tend to have more statutes governing a wider range of human activity. 
D)  Accounting law is rather general in code law countries. 
E)  A nongovernmental organization is more likely to develop in a common law country than in a code law country.

Question 4

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 to convert the 2020 Teapot, Ltd. financial statements from IFRS to U.S. GAAP.

Accepted Answer

@#IMG-DLM& According to U.S. GAAP rules applied to

Question 5

A foreign subsidiary of a U.S.-based company has been notified of a loss contingency with an estimated cost ranging between $250,000 and $275,000 which is probable of resulting in an actual loss. Each dollar amount within this range of cost is equally likely of being the actual outcome.According to IFRS, what is the amount recognized 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)  $25,000 
C)  $275,000 
D)  $262,500 
E)  $250,000 
A)  No amount will be recorded but an amount will be disclosed in the notes to the financial statements. 
B)  $25,000 
C)  $275,000 
D)  $262,500 
E)  $250,000

Question 6

Which of the following is not a problem caused by diversity in accounting practices across countries?

Accepted Answer

A)  Comparing companies in the same industry that are headquartered in different countries. 
B)  Translating foreign currency balances into U.S. dollars. 
C)  Converting local GAAP financial statements into U.S. GAAP for consolidation purposes. 
D)  Maintaining separate accounting records in both the local and U.S. GAAP. 
E)  Identifying and retaining personnel who are competent to prepare financial statements in both international and domestic accounting standards. 
A)  Comparing companies in the same industry that are headquartered in different countries. 
B)  Translating foreign currency balances into U.S. dollars. 
C)  Converting local GAAP financial statements into U.S. GAAP for consolidation purposes. 
D)  Maintaining separate accounting records in both the local and U.S. GAAP. 
E)  Identifying and retaining personnel who are competent to prepare financial statements in both international and domestic accounting standards.

Question 7

All of the following are successful FASB-IASB convergence projects except

Accepted Answer

A)  revenue recognition. 
B)  business combinations. 
C)  leases. 
D)  fair value measurement. 
E)  income taxes. 
A)  revenue recognition. 
B)  business combinations. 
C)  leases. 
D)  fair value measurement. 
E)  income taxes.

Question 8

With regard to IFRS, what does SME refer to, and what is the significance with regard to financial reporting requirements?

Accepted Answer

With regard to IFRS, SME refers to small

Question 9

Why do countries have their own unique set of financial reporting practices?

Accepted Answer

Five commonly accepted factors influence

Question 10

Foreign companies whose stock is listed on a U.S. stock exchange and using foreign GAAP other than IFRS must file their annual report with the SEC on:

Accepted Answer

A)  Form 8-A. 
B)  Form 10-A. 
C)  Form 16-K. 
D)  Form 20-F. 
E)  Form 20-K. 
A)  Form 8-A. 
B)  Form 10-A. 
C)  Form 16-K. 
D)  Form 20-F. 
E)  Form 20-K.

Question 11

What does the IASB's Conceptual Framework for Financial Reporting state as the objective of general purpose financial reporting?

Accepted Answer

The IASB Conceptual Framework states tha

Question 12

All of the following are ways a country may use IFRS except:

Accepted Answer

A)  A country may require foreign companies listed on its domestic stock exchange to use IFRS. 
B)  A country may permit companies listed on its domestic stock exchange to use IFRS. 
C)  A country may permit foreign companies listed on a foreign stock exchange to use foreign GAAP. 
D)  A country may require companies listed on its domestic stock exchange to use IFRS in preparing consolidated financial statements. 
E)  A country may adopt IFRS as its national GAAP. 
A)  A country may require foreign companies listed on its domestic stock exchange to use IFRS. 
B)  A country may permit companies listed on its domestic stock exchange to use IFRS. 
C)  A country may permit foreign companies listed on a foreign stock exchange to use foreign GAAP. 
D)  A country may require companies listed on its domestic stock exchange to use IFRS in preparing consolidated financial statements. 
E)  A country may adopt IFRS as its national GAAP.

Question 13

A company is preparing financial statements using IFRS for the first time for the year ended December 31, 2021. The "transition date" for reporting is

Accepted Answer

A)  December 31, 2021. 
B)  December 31, 2020. 
C)  January 1, 2020. 
D)  January 1, 2021. 
E)  January 1, 2022. 
A)  December 31, 2021. 
B)  December 31, 2020. 
C)  January 1, 2020. 
D)  January 1, 2021. 
E)  January 1, 2022.

Question 14

Which of the following is not a problem caused by diverse accounting practices across countries?

Accepted Answer

A)  Preparation of consolidated financial statements. 
B)  Gaining access to foreign capital markets. 
C)  Lack of comparability of financial statements between companies in the same country. 
D)  Cost and expertise required of accounting staff who prepare consolidated financial statements. 
E)  Need for a company to maintain multiple sets of accounting records. 
A)  Preparation of consolidated financial statements. 
B)  Gaining access to foreign capital markets. 
C)  Lack of comparability of financial statements between companies in the same country. 
D)  Cost and expertise required of accounting staff who prepare consolidated financial statements. 
E)  Need for a company to maintain multiple sets of accounting records.

Question 15

What international organization currently issues IFRS?

Accepted Answer

A)  IASB. 
B)  IASC. 
C)  IOSCO. 
D)  FASB. 
E)  EU. 
A)  IASB. 
B)  IASC. 
C)  IOSCO. 
D)  FASB. 
E)  EU.

Question 16

What are the two primary methods used by countries to incorporate IFRS into their financial reporting requirements for listed companies?

Accepted Answer

(1) Full adoption of IFRS as i

Question 17

ASU, Inc., a U.S. company, was acquired by an international company and ASU has a transition date of January 1, 2021 for first-time adoption of IFRS. ASU has a new cookie brand that is ready to be marketed but the company has not yet received copyright approval for the brand's logo. All costs for development of the copyright were expensed prior to IFRS January 1, 2021. ASU and its new international parent both have December 31 year-end accounting years. What should ASU do to prepare financial statements for the first time in accordance with IFRS?

Accepted Answer

A)  Debit development expense and credit copyright for the year ended December 31, 2021. 
B)  Debit copyright and credit copyright expense at January 1, 2021. 
C)  Debit copyright and credit research and development expense for the year ended December 31, 2020. 
D)  Debit copyright and credit stockholders' equity at January 1, 2021. 
E)  Debit stockholders' equity and credit research and development expense at January 1, 2021. 
A)  Debit development expense and credit copyright for the year ended December 31, 2021. 
B)  Debit copyright and credit copyright expense at January 1, 2021. 
C)  Debit copyright and credit research and development expense for the year ended December 31, 2020. 
D)  Debit copyright and credit stockholders' equity at January 1, 2021. 
E)  Debit stockholders' equity and credit research and development expense at January 1, 2021.

Question 18

Which of the following is not one of the optional exemptions provided by IFRS 1 to first-time adopters of IFRS in preparing the opening balance sheet?

Accepted Answer

A)  Option not to adjust the carrying amount of goodwill recognized under previous GAAP. 
B)  Option not to restate a business combination originally accounted for under the pooling method. 
C)  Option not to retrospectively apply IFRS 2 to stock options. 
D)  Option not to recognize any cumulative translation adjustment for foreign subsidiaries. 
E)  Option not to comply with all presentation and disclosure requirements. 
A)  Option not to adjust the carrying amount of goodwill recognized under previous GAAP. 
B)  Option not to restate a business combination originally accounted for under the pooling method. 
C)  Option not to retrospectively apply IFRS 2 to stock options. 
D)  Option not to recognize any cumulative translation adjustment for foreign subsidiaries. 
E)  Option not to comply with all presentation and disclosure requirements.

Question 19

A U.S. company has many foreign subsidiaries and wants to convert its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the opening IFRS balance sheet?

Accepted Answer

A)  Inventory valuation. 
B)  Capitalizing development costs. 
C)  Bank overdrafts that are integral to cash management. 
D)  Goodwill calculation from acquisition of a subsidiary. 
E)  Liability for restructuring charges. 
A)  Inventory valuation. 
B)  Capitalizing development costs. 
C)  Bank overdrafts that are integral to cash management. 
D)  Goodwill calculation from acquisition of a subsidiary. 
E)  Liability for restructuring charges.

Question 20

A U.S. company has many foreign subsidiaries and is converting its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the conversion?

Accepted Answer

A)  Measuring impairment. 
B)  Classifying preferred shares of stock. 
C)  Sale and leaseback gain recognition. 
D)  Measuring salaries expense. 
E)  Prior service cost recognition for defined benefit plans. 
A)  Measuring impairment. 
B)  Classifying preferred shares of stock. 
C)  Sale and leaseback gain recognition. 
D)  Measuring salaries expense. 
E)  Prior service cost recognition for defined benefit plans.

The most recent FASB-IASB convergence projects include:

Which of the following statements is false regarding a country's legal system?

Which of the following is not a problem caused by diversity in accounting practices across countries?

All of the following are successful FASB-IASB convergence projects except

With regard to IFRS, what does SME refer to, and what is the significance with regard to financial reporting requirements?

Why do countries have their own unique set of financial reporting practices?

Foreign companies whose stock is listed on a U.S. stock exchange and using foreign GAAP other than IFRS must file their annual report with the SEC on:

What does the IASB's Conceptual Framework for Financial Reporting state as the objective of general purpose financial reporting?

All of the following are ways a country may use IFRS except:

A company is preparing financial statements using IFRS for the first time for the year ended December 31, 2021. The "transition date" for reporting is

Which of the following is not a problem caused by diverse accounting practices across countries?

What international organization currently issues IFRS?

What are the two primary methods used by countries to incorporate IFRS into their financial reporting requirements for listed companies?

Which of the following is not one of the optional exemptions provided by IFRS 1 to first-time adopters of IFRS in preparing the opening balance sheet?

A U.S. company has many foreign subsidiaries and wants to convert its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the opening IFRS balance sheet?

A U.S. company has many foreign subsidiaries and is converting its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the conversion?

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

Exam 11: Worldwide Accounting Diversity and International Accounting Standards

The most recent FASB-IASB convergence projects include:

Which of the following statements is false regarding a country's legal system?

Which of the following is not a problem caused by diversity in accounting practices across countries?

All of the following are successful FASB-IASB convergence projects except

With regard to IFRS, what does SME refer to, and what is the significance with regard to financial reporting requirements?

Why do countries have their own unique set of financial reporting practices?

Foreign companies whose stock is listed on a U.S. stock exchange and using foreign GAAP other than IFRS must file their annual report with the SEC on:

What does the IASB's Conceptual Framework for Financial Reporting state as the objective of general purpose financial reporting?

All of the following are ways a country may use IFRS except:

A company is preparing financial statements using IFRS for the first time for the year ended December 31, 2021. The "transition date" for reporting is

Which of the following is not a problem caused by diverse accounting practices across countries?

What international organization currently issues IFRS?

What are the two primary methods used by countries to incorporate IFRS into their financial reporting requirements for listed companies?

Which of the following is not one of the optional exemptions provided by IFRS 1 to first-time adopters of IFRS in preparing the opening balance sheet?

A U.S. company has many foreign subsidiaries and wants to convert its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the opening IFRS balance sheet?

A U.S. company has many foreign subsidiaries and is converting its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the conversion?

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