Question 1

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 2

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 3

What is the significance of the "Norwalk Agreement?"

Accepted Answer

The "Norwalk Agreement" set the FASB and

Question 4

Which of the following is not an authoritative pronouncement of International Financial Reporting Standards (IFRSs)?

Accepted Answer

A)  International Financial Reporting Standards issued by the IASB 
B)  International Accounting Standards issued by the IASC and adopted by the IASB 
C)  Interpretations issued by the International Financial Reporting Interpretations Committee (IFRICs) 
D)  International Accounting Principles 
E)  Interpretations issued by the Standing Interpretations Committee (SICs) and adopted by the IASB 
A)  International Financial Reporting Standards issued by the IASB 
B)  International Accounting Standards issued by the IASC and adopted by the IASB 
C)  Interpretations issued by the International Financial Reporting Interpretations Committee (IFRICs) 
D)  International Accounting Principles 
E)  Interpretations issued by the Standing Interpretations Committee (SICs) and adopted by the IASB

Question 5

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

Question 6

Dowa, Ltd.. is a foreign company that uses IFRS for its financial reporting. Dowa is a wholly-owned subsidiary of Ide Corp. which is a U.S. company that prepares its consolidated financial statements in accordance with U.S. GAAP. Dowa purchased a piece of equipment for 2,000,000 on January 1, 2017. The equipment is comprised of the following three significant components, shown with their associated cost and useful life.
   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 Dowa, Ltd.. is a foreign company that...

Question 7

Which of the following is not true about IFRS?

Accepted Answer

A)  The IASB does not have the ability to enforce proper usage of IFRS. 
B)  IFRS is available to any organization or nation that wishes to use those standards. 
C)  IFRS is a comprehensive set of financial reporting standards. 
D)  IFRS includes only pronouncements issued by the IASB. 
E)  IFRS are considered as generally accepted accounting principles. 
A)  The IASB does not have the ability to enforce proper usage of IFRS. 
B)  IFRS is available to any organization or nation that wishes to use those standards. 
C)  IFRS is a comprehensive set of financial reporting standards. 
D)  IFRS includes only pronouncements issued by the IASB. 
E)  IFRS are considered as generally accepted accounting principles.

Question 8

Bugs, Inc., a wholly owned subsidiary of the U.S.-based company, Pillows Ltd., was notified of a loss contingency with an estimated cost ranging between $50,000 and $150,000. Bugs, Inc. hired an expert appraiser who assessed that all possible dollar amounts of liability in this range are equally likely. Management of Bugs, Inc. has estimated that there is a 60 percent chance that this contingency will result in an actual loss.
-In the conversion from U.S.GAAP financial statements to IFRS financial statements, what is the amount of adjustment needed to adjust for the difference in accounting for a provision for loss contingency?

Accepted Answer

A)  $0 
B)  $50,000 
C)  $100,000 
D)  $150,000 
E)  $200,000 
A)  $0 
B)  $50,000 
C)  $100,000 
D)  $150,000 
E)  $200,000

Question 9

IFRS for SMEs differ from full IFRS in all of the following ways except:

Accepted Answer

A)  IFRS for SMEs require significantly fewer disclosures. 
B)  Interim period reports need not be prepared when following IFRS for SMEs. 
C)  Recognizing and measuring assets are simplified when following IFRS for SMEs. 
D)  Segment reporting must be provided when following IFRS for SMEs. 
E)  IFRS for SMEs do not require earnings per share to be reported. 
A)  IFRS for SMEs require significantly fewer disclosures. 
B)  Interim period reports need not be prepared when following IFRS for SMEs. 
C)  Recognizing and measuring assets are simplified when following IFRS for SMEs. 
D)  Segment reporting must be provided when following IFRS for SMEs. 
E)  IFRS for SMEs do not require earnings per share to be reported.

Question 10

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 11

Which one of the following is not a background or qualification requirement for full-time IASB members?

Accepted Answer

A)  Professional competence. 
B)  Attain 10 years of auditing experience. 
C)  Practical experience. 
D)  Cease holding positions which might call into question their independence. 
E)  Sever relationship with former employers. 
A)  Professional competence. 
B)  Attain 10 years of auditing experience. 
C)  Practical experience. 
D)  Cease holding positions which might call into question their independence. 
E)  Sever relationship with former employers.

Question 12

What is the IOSCO?

Accepted Answer

The International Organization of Securi

Question 13

What are measurement differences in financial reporting and what would be an example of a difference between IFRS and U.S.GAAP??

Accepted Answer

Measurement differences result in differ

Question 14

Barrel of Oats (BOA), a U.S.company, was acquired by an international company and BOA has a transition date of January 1, 2018 for first-time adoption of IFRS.BOA has a new cereal 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, 2018.BOA and its new international parent both have December 31 year-end accounting years.What should BOA 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, 2018. 
B)  Debit copyright and credit copyright expense at January 1, 2018. 
C)  Debit copyright and credit research and development expense for the year ended December 31, 2017. 
D)  Debit copyright and credit stockholders' equity at January 1, 2018. 
E)  Debit stockholders' equity and credit research and development expense at January 1, 2018. 
A)  Debit development expense and credit copyright for the year ended December 31, 2018. 
B)  Debit copyright and credit copyright expense at January 1, 2018. 
C)  Debit copyright and credit research and development expense for the year ended December 31, 2017. 
D)  Debit copyright and credit stockholders' equity at January 1, 2018. 
E)  Debit stockholders' equity and credit research and development expense at January 1, 2018.

Question 15

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 16

Bugs, Inc., a wholly owned subsidiary of the U.S.-based company, Pillows Ltd., was notified of a loss contingency with an estimated cost ranging between $50,000 and $150,000. Bugs, Inc. hired an expert appraiser who assessed that all possible dollar amounts of liability in this range are equally likely. Management of Bugs, Inc. has estimated that there is a 60 percent chance that this contingency will result in an actual loss.
-According to U.S.GAAP, what is the amount recognized by Bugs, Inc.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)  $50,000 
C)  $60,000 
D)  $100,000 
E)  $150,000 
A)  No amount will be recorded but an amount will be disclosed in the notes to the financial statements. 
B)  $50,000 
C)  $60,000 
D)  $100,000 
E)  $150,000

Question 17

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 18

The most relevant factor in determining the purpose of financial reporting is:

Accepted Answer

A)  The nature of the country's financing system 
B)  The country's current economic conditions 
C)  The ability to control inflation 
D)  A strong equity financing system which is more conservative, minimal disclosures, and tight tax laws. 
E)  A weak equity financing system which is less conservative, extensive disclosures and loose tax laws. 
A)  The nature of the country's financing system 
B)  The country's current economic conditions 
C)  The ability to control inflation 
D)  A strong equity financing system which is more conservative, minimal disclosures, and tight tax laws. 
E)  A weak equity financing system which is less conservative, extensive disclosures and loose tax laws.

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

What two reconciliations are required by IFRS 1 for first-time IFRS Adopters?

Accepted Answer

(1) Reconciliation of total equity measu

Exam 11: A: Worldwide Accounting Diversity and International Accounting Standards

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

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

What is the significance of the "Norwalk Agreement?"

Which of the following is not an authoritative pronouncement of International Financial Reporting Standards (IFRSs)?

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

Which of the following is not true about IFRS?

IFRS for SMEs differ from full IFRS in all of the following ways except:

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

Which one of the following is not a background or qualification requirement for full-time IASB members?

What is the IOSCO?

What are measurement differences in financial reporting and what would be an example of a difference between IFRS and U.S.GAAP??

In countries of Latin America:

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

The most relevant factor in determining the purpose of financial reporting is:

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?

What two reconciliations are required by IFRS 1 for first-time IFRS Adopters?

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

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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