The following inventory information was taken from the records of GlobeKom Ltd.:$\begin{array}{lr} \text { Historical cost } & \$ 12,000 \\ \text { Replacement cost } & \$ 9,000 \\ \text { Expected selling price } & \$ 10,000 \\ \text { Expected selling cost } & \$ 500 \\ \text { Normal profit margin } & 10 \% \text { of selling price } \end{array}$ -Under IAS 2, what should the balance sheet report for Inventory?

A) $9,000 B) $8,500 C) $9,500 D) $10,000 A) $9,000 B) $8,500 C) $9,500 D) $10,000

The following information was taken from the fixed asset records of Bosco Ltd. as of December 31, 2010:$\begin{array}{llr} \text { Carrying value } & € 100,000 \\ \text { Selling price } & € 85,000 \\ \text { Costs of disposal } & € 3,000 \\ \text { Expected future cash flows } & € 75,000 \\ \text { Present value of expected future cash flows } & € 63,000 \end{array}$ -Using IAS 36, what is the recoverable amount?

A) €85,000 B) €82,000 C) €63,000 D) €75,000 A) €85,000 B) €82,000 C) €63,000 D) €75,000

The following information was taken from the fixed asset records of Bosco Ltd. as of December 31, 2010:$\begin{array}{llr} \text { Carrying value } & € 100,000 \\ \text { Selling price } & € 85,000 \\ \text { Costs of disposal } & € 3,000 \\ \text { Expected future cash flows } & € 75,000 \\ \text { Present value of expected future cash flows } & € 63,000 \end{array}$ -What is the amount of impairment loss under U.S.GAAP?

A) €37,000 B) €18,000 C) €15,000 D) €25,000 A) €37,000 B) €18,000 C) €15,000 D) €25,000

Exam 4: International Financial Reporting Standards: Part I

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 IAS 2, what should the balance sheet report for Inventory?

(Multiple Choice)

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Question 21

Which of the following inventory valuation methods, commonly used under the U.S.GAAP, is NOT allowed under IAS 2 (Inventories)?

(Multiple Choice)

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Question 22

Under IAS 38, which of the following items might qualify for capitalization as internally generated intangible assets?

(Multiple Choice)

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Question 23

How does the treatment of borrowing costs under U.S.GAAP differ from IFRS?

(Multiple Choice)

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Question 24

A "bottom-up" test and "top-down" test must be applied under IASB standards to determine:

(Multiple Choice)

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Question 25

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 recoverable amount?

(Multiple Choice)

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Question 26

As defined by IAS 38, how are intangible assets unlike other assets?

(Multiple Choice)

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Question 27

Camerata Construction borrowed €19,000,000 for 10 years at 6% specifically to modernize its operations with new equipment.The average rate of interest on Camerata's debt after considering the most recent loan was 5.5%.What rate of interest should be used for capitalizing the borrowing costs on the new equipment under IAS 23?

(Multiple Choice)

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Question 28

Under U.S.GAAP, interest on loans secured to acquire fixed assets must be:

(Multiple Choice)

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Question 29

What is one major difference between IFRS and U.S.GAAP relative to discontinued operations?

(Multiple Choice)

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Question 30

IASB standards address related party transactions.According to these standards, which of the following is considered a "related party?"

(Multiple Choice)

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Question 31

In what way does IAS 16 (Property, Plant, and Equipment) differ from U.S.GAAP concerning fixed asset measurement subsequent to initial recognition?

(Multiple Choice)

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Question 32

Under IAS 40 (Investment Property), gains or losses from revaluation are:

(Multiple Choice)

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Question 33

According to IFRS 8 (Segment Reporting), which is NOT one of the three criteria for defining an operating segment?

(Multiple Choice)

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Question 34

Under IAS 2, what adjustment needs to be made after an inventory write-down if the selling price subsequently increases?

(Multiple Choice)

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Question 35

How should the cost of borrowing funds to acquire or construct property, plant, and equipment be accounted for under IASB rules, as revised in 2007?

(Multiple Choice)

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Question 36

In an Ernst & Young 2005 survey of 130 companies' Forms 20-F filed with the SEC, what issue required adjustments by the greatest number of companies?

(Multiple Choice)

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Question 37

How does IAS 34 (Interim Financial Reporting) differ from U.S.GAAP?

(Multiple Choice)

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Question 38

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 -What is the amount of impairment loss under U.S.GAAP?

(Multiple Choice)

4.8/5

(79)

Question 39

Under IAS 17, in a sale-leaseback transaction, how must the initial owner treat any gain on a finance lease?

(Multiple Choice)

4.9/5

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Question 40

Showing 21 - 40 of 54

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 IAS 2, what should the balance sheet report for Inventory?

Which of the following inventory valuation methods, commonly used under the U.S.GAAP, is NOT allowed under IAS 2 (Inventories)?

Under IAS 38, which of the following items might qualify for capitalization as internally generated intangible assets?

How does the treatment of borrowing costs under U.S.GAAP differ from IFRS?

A "bottom-up" test and "top-down" test must be applied under IASB standards to determine:

As defined by IAS 38, how are intangible assets unlike other assets?

Under U.S.GAAP, interest on loans secured to acquire fixed assets must be:

What is one major difference between IFRS and U.S.GAAP relative to discontinued operations?

IASB standards address related party transactions.According to these standards, which of the following is considered a "related party?"

In what way does IAS 16 (Property, Plant, and Equipment) differ from U.S.GAAP concerning fixed asset measurement subsequent to initial recognition?

Under IAS 40 (Investment Property), gains or losses from revaluation are:

According to IFRS 8 (Segment Reporting), which is NOT one of the three criteria for defining an operating segment?

Under IAS 2, what adjustment needs to be made after an inventory write-down if the selling price subsequently increases?

How should the cost of borrowing funds to acquire or construct property, plant, and equipment be accounted for under IASB rules, as revised in 2007?

In an Ernst & Young 2005 survey of 130 companies' Forms 20-F filed with the SEC, what issue required adjustments by the greatest number of companies?

How does IAS 34 (Interim Financial Reporting) differ from U.S.GAAP?

Under IAS 17, in a sale-leaseback transaction, how must the initial owner treat any gain on a finance lease?

Introduction to International Accounting

Worldwide Accounting Diversity

International Convergence of Financial Reporting

International Financial Reporting Standards: Part II

Comparative Accounting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Additional Financial Reporting Issues

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Strategic Accounting Issues in Multinational Corporations

Comparative International Auditing and Corporate Governance

International Corporate Social Reporting

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