Exam 4: International Financial Reporting Standards: Part I

The following information was taken from the fixed asset records of Bosco Ltd. as of December 31, 2010: Carrying value 100,000 Selling price 85,000 Costs of disposal 3,000 Expected future cash flows 75,000 Present value of expected future cash flows 63,000 -Using IAS 36, what is the amount of impairment loss?

Under what circumstance, both U.S.GAAP and IAS 2 will provide similar result with respect to inventory valuation?

Which of the following is true about the IASB standards on statement of cash flows?

According to IAS 16 (Property, Plant and Equipment), what is the term used to indicate the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction?

Rive Rouge Confections Company incurred €5,000,000 to determine if chocolate could be made to resist melting by adding certain inert minerals to the mixture.According to IAS 38, how should Rive Rouge record this cost?

Which of the following is generally true about the differences between U.S.GAAP and IFRS?

IAS 38 states that an intangible asset is deemed to have an indefinite life when there is no foreseeable end to the expected cash flows the asset is likely to generate.What is the impact of an indefinite life on amortization of the intangible asset's cost under IAS 38?

Under IAS 10 (Events after the Reporting Period), adjusting events that occur after the balance sheet date are:

Chien Bleu Ltd.purchased a building in 2009 for €10,000,000 and as of December 31, 2015 had recorded accumulated depreciation on the building of €3,000,000.On December 31, 2015, the company conducted its first revaluation when the fair value was €12,000,000.According to IAS 16, what account should be credited for €5,000,000?

Through 50 years of high quality service, Domo Diagnostics Laboratory has created goodwill with its clients that management estimates is worth at least $20,000,000.Under IAS 38, how should this be recognized?

Agro-World Technologies Inc.incurred $1,000,000 to construct a pilot plant to study the feasibility of building agricultural machinery more inexpensively for emerging economies.How would this cost be classified under IAS 38 (Intangible Assets)?

The following inventory information was taken from the records of GlobeKom Ltd.: Historical cost \ 12,000 Replacement cost \ 9,000 Expected selling price \ 10,000 Expected selling cost \ 500 Normal profit margin 10\% of selling price -Under U.S.GAAP, what should the balance sheet report for Inventory?

Under U.S.GAAP, if the carrying value of a fixed asset was $50,000, the undiscounted expected future cash flows was $55,000, the discounted expected future cash flows was $51,000, and the selling price was $53,000, what is the amount of impairment loss?

The following inventory information was taken from the records of Kleinfeld Inc.: Historical cost \ 12,000 Replacement cost \ 7,000 Expected selling price \ 9,000 Expected selling cost \ 500 Normal profit margin 50\% of price -Under IAS 2, what should the balance sheet report for Inventory?

When a patent or trademark is acquired in a business combination, what does IAS 38 say about recording these intangibles?

Blanco Chemical Company spent €15,000,000 in development efforts to create a fertilizer for which it was able to obtain a patent; however, the expected distribution costs make it infeasible to market the chemical in the foreseeable future.According to IAS 38 (Intangible Assets), how should Blanco Chemical Company record the €15,000,000?

In what way should operating leases be accounted for under IAS 17?

What do IASB standards say about related party transactions?

Under IAS 16 (Property, Plant, and Equipment), subsequent revaluation decreases are:

Which of the following items should be included in the cost of property, plant, and equipment under IAS 16?