Exam 5: International Financial Reporting Standards: Part II

Zenith Company, a calendar-year entity, amends its defined benefit pension plan on January 1, 2019 and must recognize the increase in past service costs of its vested and non-vested employees as of that date in the calculation of its net 2019 pension expense (or revenue). The pertinent facts as of January 1, 2019 are: Calculate the past service costs included in 2019 net pension expense (or revenue) under IAS 19.

What is a "contingent asset?"

Which of the following represents a difference in the classification of current liabilities between IFRS and U.S. GAAP?

According to IAS 37, how should contingent assets be recognized?

Under the IASB's exposure draft, Income Tax, how would the term "substantively enacted", as it applies to tax laws, be determined?

Sigma Company issued $12 million in 10 percent bonds 6 years ago currently having a carrying amount of $10.7 million. The bond agreement allows for early extinguishment by Sigma Company beginning in the current year. Sigma's investment bank has arranged for the company to issue $10 million of new 8 percent bonds at face value to a group of investors. The proceeds will be used to extinguish the 10 percent bonds. The banking, legal, and accounting costs to execute the transaction total $200,000. The journal entry to record the debt extinguishment will include:

Under IAS 12, Income Taxes, which of the following issues are covered?

IFRS 15, Revenue from Contracts with Customers, covers which types of revenues?

Which of the following is NOT a share-based payment transaction under IFRS 2?

Under U.S. GAAP, a deferred tax asset must be realized when:

Under IFRS 2, Share-based Payment, what approach is used to account for the transaction?

Which of the following statements is true of the treatment of actuarial gains and losses under IFRS and U.S. GAAP?

Under IAS 37, inflows of resources that are "virtually certain" to be received should be:

Under IAS 32, which of the following is not a financial asset?

The primary difference between IAS 37, and U.S. GAAP concerning the treatment of contingent liabilities pertains to:

Under U.S. GAAP, if an entity issues 4% preferred stock that gives shareholders the right to redeem the shares if the prevailing interest rates on 5-year certificates of deposit exceed 4%, how should this stock be accounted for on the books of the entity?

Under IFRS 2, with respect to choice-of-settlement share-based payments, if the supplier chooses the cash settlement, the entity is deemed to have issued a compound financial instrument consisting of debt and equity. When cash is received, how does the supplier apply it?

Under IAS 32, how should an equity instrument be classified?

Under U.S. GAAP, with respect to equity-settled share-based payments, if the fair value of the equity instrument is used, the value is determined:

The term "provision" as it is used in IAS 37, is most closely related to what term in U.S. GAAP?