Question 1

The types of differences that exist between IFRS and U.S.GAAP would not generally include:

Accepted Answer

A)  Presentation differences. 
B)  Measurement differences. 
C)  Disclosure differences. 
D)  Comparability differences. 
E)  Classification differences. 
A)  Presentation differences. 
B)  Measurement differences. 
C)  Disclosure differences. 
D)  Comparability differences. 
E)  Classification differences.

Question 2

In countries of Latin America:

Accepted Answer

A)  Accounting practice currently emphasizes political colonialism. 
B)  Accounting standards previously emphasized accounting highly inflationary economies. 
C)  Banks are the primary source of financing for companies. 
D)  Accounting standards focus are based on recent market economy reforms. 
E)  Accounting information is prepared to meet the needs of governmental planners. 
A)  Accounting practice currently emphasizes political colonialism. 
B)  Accounting standards previously emphasized accounting highly inflationary economies. 
C)  Banks are the primary source of financing for companies. 
D)  Accounting standards focus are based on recent market economy reforms. 
E)  Accounting information is prepared to meet the needs of governmental planners.

Question 3

What is the significance of the "Norwalk Agreement?"

Accepted Answer

The "Norwalk Agreement" set the FASB and

Question 4

As a corporate policy, Ide Corp. utilizes the straight-line method of depreciation for machinery and equipment and plans to extend this policy to Dowa, Ltd.
-Prepare the journal entry for the 2017 depreciation expense for Dowa, Ltd.based on IFRS accounting principles.

Accepted Answer

The answer of   As a corporate policy, Ide...

Question 5

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 6

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 7

Which of the following is a correct statement with regard to differences between IFRS and U.S.GAAP?

Accepted Answer

A)  Reporting a bank overdraft that is an integral part of a cash management policy is a recognition difference. 
B)  Reporting LIFO inventory is a presentation difference. 
C)  Reporting past service cost for defined benefit pension plans is a measurement difference. 
D)  Reporting convertible debt is a recognition difference. 
E)  Reporting development costs is a classification difference. 
A)  Reporting a bank overdraft that is an integral part of a cash management policy is a recognition difference. 
B)  Reporting LIFO inventory is a presentation difference. 
C)  Reporting past service cost for defined benefit pension plans is a measurement difference. 
D)  Reporting convertible debt is a recognition difference. 
E)  Reporting development costs is a classification difference.

Question 8

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 9

Which of the following is not an example of IFRS simplified for SMEs?

Accepted Answer

A)  All borrowing costs are expensed as incurred. 
B)  All development costs are expensed as incurred. 
C)  Goodwill is amortized over its useful life. 
D)  There is a choice between using the cost model and the revaluation model for property, plant, and equipment. 
E)  Actuarial gains and losses for defined benefit plans are recognized immediately. 
A)  All borrowing costs are expensed as incurred. 
B)  All development costs are expensed as incurred. 
C)  Goodwill is amortized over its useful life. 
D)  There is a choice between using the cost model and the revaluation model for property, plant, and equipment. 
E)  Actuarial gains and losses for defined benefit plans are recognized immediately.

Question 10

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 11

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 12

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 13

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 14

All of the following are influences on the development of a country's financial reporting practices except:

Accepted Answer

A)  The country's legal system. 
B)  The country's political system. 
C)  The taxation system. 
D)  The country's cultural system. 
E)  The country's level of inflation. 
A)  The country's legal system. 
B)  The country's political system. 
C)  The taxation system. 
D)  The country's cultural system. 
E)  The country's level of inflation.

Question 15

As a corporate policy, Ide Corp. utilizes the straight-line method of depreciation for machinery and equipment and plans to extend this policy to Dowa, Ltd.
-Prepare the journal entry for the 2017 depreciation expense for Ide Corp.based on U.S.GAAP.

Accepted Answer

The answer of   As a corporate policy, Ide...

Question 16

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 17

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 18

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.

Question 19

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 20

What are the four different ways IFRS can be used by a country?

Accepted Answer

IFRS can be used by a country by (1) ado

Exam 11: Worldwide Accounting Diversity and International Accounting Standards

The types of differences that exist between IFRS and U.S.GAAP would not generally include:

In countries of Latin America:

What is the significance of the "Norwalk Agreement?"

As a corporate policy, Ide Corp. utilizes the straight-line method of depreciation for machinery and equipment and plans to extend this policy to Dowa, Ltd. -Prepare the journal entry for the 2017 depreciation expense for Dowa, Ltd.based on IFRS accounting principles.

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

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

Which of the following is a correct statement with regard to differences between IFRS and U.S.GAAP?

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

Which of the following is not an example of IFRS simplified for SMEs?

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

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

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

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

All of the following are influences on the development of a country's financial reporting practices except:

As a corporate policy, Ide Corp. utilizes the straight-line method of depreciation for machinery and equipment and plans to extend this policy to Dowa, Ltd. -Prepare the journal entry for the 2017 depreciation expense for Ide Corp.based on U.S.GAAP.

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

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

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?

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 are the four different ways IFRS can be used by a country?

The Equity Method of Accounting for Investments

A: the Equity Method of Accounting for Investments

Consolidation of Financial Information

A: Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

A: Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

A: Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

A: Consolidated Financial Statements Intra-Entity Asset Transactions

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

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

Consolidated Financial Statements - Ownership Patterns and Income Taxes

A: Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

A: Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

A: Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

A: Translation of Foreign Currency Financial Statements

A: Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

A: Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

A: Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

A: Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

A: Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

A: Accounting for State and Local Governments, Part I

Accounting for State and Local Governments, Part II

A: Accounting for State and Local Governments, Part II

Accounting for Not-For-Profit Entities

A: Accounting for Not-For-Profit Entities

Accounting for Estates and Trusts

A: Accounting for Estates and Trusts

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