Exam 4: International Financial Reporting Standards: Part I

The following inventory information was taken from the records of a foreign corporation whose stock is listed on an exchange in the U.S. The following inventory information was taken from 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?

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

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

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?

What are the three major types of intangible assets?

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

How does accounting for bearer plants differ from that for other biological assets?

Which of the following items should be included in the cost of property, plant, and equipment under IAS 16?

Rive Rouge Confections Company incurred €5,000,000 to determine if chocolate could be made to resist melting by adding certain inert minerals to the mixture. According to IAS 38, how should Rive Rouge record this cost?

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?

The following inventory information was taken from the records of GlobeKom Ltd.: Under U.S. GAAP, what should the balance sheet report for Inventory?

Blanco Chemical Company spent €15,000,000 in development efforts to create a fertilizer for which it was able to obtain a patent; however, the expected distribution costs make it infeasible to market the chemical in the foreseeable future. According to IAS 38 (Intangible Assets), how should Blanco Chemical Company record the €15,000,000?

What should be the basis for choosing depreciation methods for fixed assets under IAS 16 (Property, Plant, and Equipment)?

Under IAS 16 (Property, Plant, and Equipment), subsequent revaluation decreases are:

When a patent or trademark is acquired in a business combination, what does IAS 38 say about recording these intangibles?

How do IFRS and U.S. GAAP differ in their approach to allowing reversals of inventory write-downs?

What is effective control?

Which of the following is generally true about the differences between U.S. GAAP and IFRS?

The following inventory information was taken from the records of Kleinfeld Inc.: Assume that subsequent to your adjustment the expected selling price increases to $13,000 (all the rest of the facts are the same). What adjustment to inventory should be made under IAS 2 after this event?

The following information was taken from the fixed asset records of Bosco Ltd. as of December 31, 2010: What is the amount of impairment loss under U.S. GAAP?