Question 1

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

Accepted Answer

A) similar to U.S.GAAP. 
B) disclosed in a footnote only. 
C) treated as a prior period adjustment. 
D) not disclosed,since they occurred after the fact. 
A) similar to U.S.GAAP. 
B) disclosed in a footnote only. 
C) treated as a prior period adjustment. 
D) not disclosed,since they occurred after the fact.

Question 2

Use the following to answer questions:
The following inventory information above was taken from the records of GlobeKom Ltd.:  
-Under U.S.GAAP,what should the Balance Sheet report for Inventory?

Accepted Answer

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

Question 3

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

Accepted Answer

A) U)S.GAAP requires that the after-tax gain or loss from operations and the after-tax gain or loss on asset disposal be shown as a combined item. 
B) U)S.GAAP requires the above components to be shown separately. 
C) IFRS requires that the after-tax gain or loss from operations and the after-tax gain or loss on asset disposal be shown separately. 
D) IFRS requires no separate disclosure for discontinued operations. 
A) U)S.GAAP requires that the after-tax gain or loss from operations and the after-tax gain or loss on asset disposal be shown as a combined item. 
B) U)S.GAAP requires the above components to be shown separately. 
C) IFRS requires that the after-tax gain or loss from operations and the after-tax gain or loss on asset disposal be shown separately. 
D) IFRS requires no separate disclosure for discontinued operations.

Question 4

Under a joint exposure draft issued by the IASB and FASB in August 2010,what is the most significant proposal?

Accepted Answer

A) IFRS and U.S.GAAP would have identical quantifiable criteria for lease classification. 
B) Leases would no longer be classified as finance or operating. 
C) Lessors would recognize income immediately at the inception of the lease. 
D) There would be no lease disclosure required in the notes to the financial statements. 
A) IFRS and U.S.GAAP would have identical quantifiable criteria for lease classification. 
B) Leases would no longer be classified as finance or operating. 
C) Lessors would recognize income immediately at the inception of the lease. 
D) There would be no lease disclosure required in the notes to the financial statements.

Question 5

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

Accepted Answer

A) An operating segment can't merely be a lessor. 
B) An operating segment is a component of a business that generates revenues. 
C) An operating segment is a component of a business whose operating results are regularly reviewed by the chief operating officer. 
D) An operating segment has separate financial information available. 
A) An operating segment can't merely be a lessor. 
B) An operating segment is a component of a business that generates revenues. 
C) An operating segment is a component of a business whose operating results are regularly reviewed by the chief operating officer. 
D) An operating segment has separate financial information available.

Question 6

Use the following to answer questions :
The following information was taken from the fixed asset records of Bosco Ltd as of December 31,2010:  
-Using IAS 36,what is the recoverable amount?

Accepted Answer

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

Question 7

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

Accepted Answer

A) recognized in revaluation surplus. 
B) recognized in current income. 
C) not permitted. 
D) recognized either in current income or revaluation surplus at the option of management.. 
A) recognized in revaluation surplus. 
B) recognized in current income. 
C) not permitted. 
D) recognized either in current income or revaluation surplus at the option of management..

Question 8

Chien Bleu Ltd.purchased a building in 2004 for €10,000,000 and as of December 31,2010 had recorded accumulated depreciation on the building of €3,000,000. December 31,2010 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?

Accepted Answer

A) retained earnings 
B) gain from revaluation of building 
C) revaluation surplus 
D) revaluation revenue 
A) retained earnings 
B) gain from revaluation of building 
C) revaluation surplus 
D) revaluation revenue

Question 9

Use the following to answer questions :
The following information was taken from the fixed asset records of Bosco Ltd as of December 31,2010:  
-Using IAS 36,what is the amount of Impairment Loss?

Accepted Answer

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

Question 10

Under U.S.GAAP,if the carrying value 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?

Accepted Answer

A) $5,000 
B) $3,000 
C) $1,000 
D) $0 
A) $5,000 
B) $3,000 
C) $1,000 
D) $0

Question 11

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)?

Accepted Answer

A) research 
B) development 
C) neither research nor development 
D) It could be either research or development,depending on management's wishes. 
A) research 
B) development 
C) neither research nor development 
D) It could be either research or development,depending on management's wishes.

Question 12

What do IASB standards say about related party transactions?

Accepted Answer

A) They are illegal in most countries and must be avoided. 
B) Related party transactions should be eliminated from the financial statements. 
C) They must be disclosed in the notes to the financial statements. 
D) none of the above 
A) They are illegal in most countries and must be avoided. 
B) Related party transactions should be eliminated from the financial statements. 
C) They must be disclosed in the notes to the financial statements. 
D) none of the above

Question 13

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?

Accepted Answer

A) It should be expensed in the period incurred. 
B) It should be added to the other costs of acquiring fixed assets to determine the amount for the balance sheet. 
C) Both methods are acceptable. 
D) Neither method is acceptable under IASB rules. 
A) It should be expensed in the period incurred. 
B) It should be added to the other costs of acquiring fixed assets to determine the amount for the balance sheet. 
C) Both methods are acceptable. 
D) Neither method is acceptable under IASB rules.

Question 14

If a company chooses the revaluation model permitted in IAS 16 for fixed asset measurement:

Accepted Answer

A) annual revaluations must be performed on each class of assets. 
B) it must update the valuation so that the balance sheet represents fair value on the balance sheet date. 
C) appraisals must be performed by an official of the IASB. 
D) the depreciated replacement cost must be used as the fair value of the fixed asset. 
A) annual revaluations must be performed on each class of assets. 
B) it must update the valuation so that the balance sheet represents fair value on the balance sheet date. 
C) appraisals must be performed by an official of the IASB. 
D) the depreciated replacement cost must be used as the fair value of the fixed asset.

Question 15

What is one major difference between IFRS and U.S.GAAP relative to correction of errors?

Accepted Answer

A) U)S.GAAP is silent as to how to treat errors that have been discovered. 
B) IFRS is silent as to how to treat errors that have been discovered. 
C) Under U.S.GAAP a prospective approach is taken. 
D) Under IFRS,if it's impractical to restate financial statements,then no restatement is necessary. 
A) U)S.GAAP is silent as to how to treat errors that have been discovered. 
B) IFRS is silent as to how to treat errors that have been discovered. 
C) Under U.S.GAAP a prospective approach is taken. 
D) Under IFRS,if it's impractical to restate financial statements,then no restatement is necessary.

Question 16

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?

Accepted Answer

A) Management may choose any number of years over which to amortize the cost. 
B) No amortization is taken as long as the life is considered indefinite. 
C) The cost of the asset should be amortized over 20 years. 
D) The cost of the asset should be expensed in the period the intangible asset is acquired. 
A) Management may choose any number of years over which to amortize the cost. 
B) No amortization is taken as long as the life is considered indefinite. 
C) The cost of the asset should be amortized over 20 years. 
D) The cost of the asset should be expensed in the period the intangible asset is acquired.

Question 17

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

Accepted Answer

A) parent companies 
B) subsidiary companies 
C) key members of management 
D) All of the above could be related parties. 
A) parent companies 
B) subsidiary companies 
C) key members of management 
D) All of the above could be related parties.

Question 18

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

Accepted Answer

A) defer it and amortize it into income over the life of the lease 
B) recognize it in income immediately 
C) defer it until the end of the lease term,including extensions 
D) He/she can choose to either defer it or recognize it in income immediately. 
A) defer it and amortize it into income over the life of the lease 
B) recognize it in income immediately 
C) defer it until the end of the lease term,including extensions 
D) He/she can choose to either defer it or recognize it in income immediately.

Question 19

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

Accepted Answer

A) expensed in the period they are incurred. 
B) capitalized as part of the fixed asset cost. 
C) either expensed currently or capitalized as part of the fixed asset cost. 
D) charged against revenue in the year the asset is put into service. 
A) expensed in the period they are incurred. 
B) capitalized as part of the fixed asset cost. 
C) either expensed currently or capitalized as part of the fixed asset cost. 
D) charged against revenue in the year the asset is put into service.

Question 20

The following inventory information was taken form the records of a foreign corporation whose stock is listed on an exchange in the U.S.   How will income under the U.S.GAAP compare to income the company reported under IFRS after reconciliation?

Accepted Answer

A) Income will not be affected by the reconciliation. 
B) Income under U.S.GAAP will be lower by $1,700. 
C) Income under U.S.GAAP will be lower by $2,500. 
D) Income under U.S.GAAP will be equal to income under IFRS. 
A) Income will not be affected by the reconciliation. 
B) Income under U.S.GAAP will be lower by $1,700. 
C) Income under U.S.GAAP will be lower by $2,500. 
D) Income under U.S.GAAP will be equal to income under IFRS.

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

Use the following to answer questions: The following inventory information above was taken from the records of GlobeKom Ltd.: -Under U.S.GAAP,what should the Balance Sheet report for Inventory?

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

Under a joint exposure draft issued by the IASB and FASB in August 2010,what is the most significant proposal?

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

Use the following to answer questions : The following information was taken from the fixed asset records of Bosco Ltd as of December 31,2010: -Using IAS 36,what is the recoverable amount?

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

Use the following to answer questions : The following information was taken from the fixed asset records of Bosco Ltd as of December 31,2010: -Using IAS 36,what is the amount of Impairment Loss?

Under U.S.GAAP,if the carrying value 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?

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)?

What do IASB standards say about related party transactions?

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?

If a company chooses the revaluation model permitted in IAS 16 for fixed asset measurement:

What is one major difference between IFRS and U.S.GAAP relative to correction of errors?

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?

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

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

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

The following inventory information was taken form the records of a foreign corporation whose stock is listed on an exchange in the U.S. How will income under the U.S.GAAP compare to income the company reported under IFRS after reconciliation?

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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Exam 4: International Financial Reporting Standards: Part I

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

Use the following to answer questions: The following inventory information above was taken from the records of GlobeKom Ltd.: -Under U.S.GAAP,what should the Balance Sheet report for Inventory?

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

Under a joint exposure draft issued by the IASB and FASB in August 2010,what is the most significant proposal?

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

Use the following to answer questions : The following information was taken from the fixed asset records of Bosco Ltd as of December 31,2010: -Using IAS 36,what is the recoverable amount?

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

Use the following to answer questions : The following information was taken from the fixed asset records of Bosco Ltd as of December 31,2010: -Using IAS 36,what is the amount of Impairment Loss?

Under U.S.GAAP,if the carrying value 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?

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)?

What do IASB standards say about related party transactions?

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?

If a company chooses the revaluation model permitted in IAS 16 for fixed asset measurement:

What is one major difference between IFRS and U.S.GAAP relative to correction of errors?

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?

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

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

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

The following inventory information was taken form the records of a foreign corporation whose stock is listed on an exchange in the U.S. How will income under the U.S.GAAP compare to income the company reported under IFRS after reconciliation?

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

Filters