Question 1

What are measurement differences in international reporting and what would be an example of a difference?

Accepted Answer

Measurement differences result in differ

Question 2

Which of the following items is not one of the ten accounting issues most commonly requiring adjustments in foreign reconciliations to U.S.GAAP?

Accepted Answer

A) Foreign currency translation. 
B) Depreciation expense. 
C) Deferred taxes. 
D) Gain/loss on disposal of assets. 
E) Interest expense. 
A) Foreign currency translation. 
B) Depreciation expense. 
C) Deferred taxes. 
D) Gain/loss on disposal of assets. 
E) Interest expense.

Question 3

What are recognition differences in international reporting and what would be an example of a difference?

Accepted Answer

Recognition differences relate to whethe

Question 4

REFERENCE: Ref.11_01
The following information pertains to inventory held by a company upon December 31,2008.  
-As a result of inventory loss,what is the difference in income between reporting using US GAAP and IFRSs?

Accepted Answer

A) US GAAP income is $1000 higher. 
B) US GAAP income is $2000 lower. 
C) IFRSs income is $1000 higher. 
D) IFRSs income is $1000 lower. 
E) IFRSs income is $5000 higher. 
A) US GAAP income is $1000 higher. 
B) US GAAP income is $2000 lower. 
C) IFRSs income is $1000 higher. 
D) IFRSs income is $1000 lower. 
E) IFRSs income is $5000 higher.

Question 5

REFERENCE: Ref.11_01
The following information pertains to inventory held by a company upon December 31,2008.  
-What is the amount of inventory loss shown on the income statement under IFRSs?

Accepted Answer

A) $1,000. 
B) $2,000. 
C) $4,000. 
D) $5,000. 
E) $6,000. 
A) $1,000. 
B) $2,000. 
C) $4,000. 
D) $5,000. 
E) $6,000.

Question 6

What international organization currently promulgates IFRSs?

Accepted Answer

A) IASB. 
B) IASC. 
C) IOSCO. 
D) FASB. 
E) EU. 
A) IASB. 
B) IASC. 
C) IOSCO. 
D) FASB. 
E) EU.

Question 7

REFERENCE: Ref.11_02
The following information pertains to inventory held by a company on December 31,2008.  
-What is the amount of inventory loss shown on the income statement under US GAAP?

Accepted Answer

A) $1,000. 
B) $2,000. 
C) $4,000. 
D) $5,000. 
E) $6,000. 
A) $1,000. 
B) $2,000. 
C) $4,000. 
D) $5,000. 
E) $6,000.

Question 8

In countries where there are requirements for extensive disclosures in accounting reports,

Accepted Answer

A) accounting practice is designed to provide adequate information to investors and creditors. 
B) accounting standards emphasize accounting for high inflation situations. 
C) accounting information is prepared to meet the needs of governmental planners. 
D) banks are the primary source of financing for companies. 
E) the accounting focus is on recent market economy reforms. 
A) accounting practice is designed to provide adequate information to investors and creditors. 
B) accounting standards emphasize accounting for high inflation situations. 
C) accounting information is prepared to meet the needs of governmental planners. 
D) banks are the primary source of financing for companies. 
E) the accounting focus is on recent market economy reforms.

Question 9

The U.S.Securities and Exchange Commission (SEC)requires foreign companies that wish to have stocks traded on U.S.stock exchanges to

Accepted Answer

A) present financial statements which comply with international accounting standards. 
B) conform with U.S.GAAP or to present a reconciliation to U.S.GAAP. 
C) have a demonstrated need for capital to be used for operations in the U.S. 
D) use the U.S.dollar as their reporting currency. 
E) become licensed to do business in the U.S. 
A) present financial statements which comply with international accounting standards. 
B) conform with U.S.GAAP or to present a reconciliation to U.S.GAAP. 
C) have a demonstrated need for capital to be used for operations in the U.S. 
D) use the U.S.dollar as their reporting currency. 
E) become licensed to do business in the U.S.

Question 10

REFERENCE: Ref.11_05
A company sells a building to a bank in 2008 at a gain of $100,000 and immediately leases the building back for period of five years.The lease is accounted for as an operating lease.The building was originally purchased for $200,000 and currently has a book value of $50,000.
-As a result of the sale and leaseback transaction in 2008,what is the difference between income between reporting using US GAAP and IFRSs in 2008?

Accepted Answer

A) US GAAP income is $80,000 higher. 
B) US GAAP income is $100,000 higher. 
C) IFRSs income is $50,000 lower. 
D) IFRSs income is $100,000 lower. 
E) IFRSs income is $80,000 higher. 
A) US GAAP income is $80,000 higher. 
B) US GAAP income is $100,000 higher. 
C) IFRSs income is $50,000 lower. 
D) IFRSs income is $100,000 lower. 
E) IFRSs income is $80,000 higher.

Question 11

Which of the following statements is false regarding providers of financing?

Accepted Answer

A) There is less pressure to provide accounting information in those countries in which financing is primarily by banks. 
B) In countries where capital stock is the primary source of financing,accounting emphasizes the income statement. 
C) Disclosures are less extensive in those countries financed primarily by stock. 
D) Bankers tend to focus more on solvency and stockholders focus more on profitability. 
E) As companies become more dependent on financing by stock,more information is demanded. 
A) There is less pressure to provide accounting information in those countries in which financing is primarily by banks. 
B) In countries where capital stock is the primary source of financing,accounting emphasizes the income statement. 
C) Disclosures are less extensive in those countries financed primarily by stock. 
D) Bankers tend to focus more on solvency and stockholders focus more on profitability. 
E) As companies become more dependent on financing by stock,more information is demanded.

Question 12

Which one of the following countries today most likely does not use a function of expense format to report operating income?

Accepted Answer

A) Bangladesh. 
B) Netherlands. 
C) Mexico. 
D) France. 
E) Germany. 
A) Bangladesh. 
B) Netherlands. 
C) Mexico. 
D) France. 
E) Germany.

Question 13

What are the topics covered under the short-term convergence project?

Accepted Answer

The topics covered under the s

Question 14

What are the six key FASB initiatives to further convergence?

Accepted Answer

The six key FASB initiatives to further

Question 15

REFERENCE: 11_03
A company acquired a new piece of equipment on January 1,2006 at a cost of $200,000.The equipment is expected to have a useful life of 10 years,a residual value of $20,000 and is being depreciated on a straightline basis.On January 1,2008,the equipment was appraised and determined to have a fair value of $190,000 and a residual value of $25,000 and a remaining useful life of 10 years.
-At what amount should the equipment be reported on the December 2008 balance sheet under IFRSs benchmark treatment?

Accepted Answer

A) $200,000 
B) $180,000 
C) $164,000 
D) $160,000 
E) $146,000 
A) $200,000 
B) $180,000 
C) $164,000 
D) $160,000 
E) $146,000

Question 16

What are the arguments against accounting harmonization?

Accepted Answer

(1)The magnitude of the current differen

Question 17

Why does each country have its own unique set of financial reporting practices?

Accepted Answer

A survey identified five commonly accept

Question 18

REFERENCE: Ref.11_04
A company incurs research and development costs of $200,000 in 2008 and relates $50,000 of these costs to development activities subsequent to a point in time when certain criteria have been met that suggest that an intangible asset has been created.
-What amount should be recognized as research and development expense in 2008 using IFRSs?

Accepted Answer

A) $50,000. 
B) $150,000. 
C) $200,000. 
D) $0. 
E) $250,000. 
A) $50,000. 
B) $150,000. 
C) $200,000. 
D) $0. 
E) $250,000.

Question 19

REFERENCE: Ref.11_05
A company sells a building to a bank in 2008 at a gain of $100,000 and immediately leases the building back for period of five years.The lease is accounted for as an operating lease.The building was originally purchased for $200,000 and currently has a book value of $50,000.
-What amount should be recognized in 2008 as a gain on the sale using U.S.GAAP?

Accepted Answer

A) $20,000. 
B) $50,000. 
C) $100,000. 
D) $150,000. 
E) $200,000. 
A) $20,000. 
B) $50,000. 
C) $100,000. 
D) $150,000. 
E) $200,000.

Question 20

Which two EU directives have helped harmonize accounting standards?

Accepted Answer

The fourth and seventh directive have he

What are measurement differences in international reporting and what would be an example of a difference?

Which of the following items is not one of the ten accounting issues most commonly requiring adjustments in foreign reconciliations to U.S.GAAP?

What are recognition differences in international reporting and what would be an example of a difference?

REFERENCE: Ref.11_01 The following information pertains to inventory held by a company upon December 31,2008. -As a result of inventory loss,what is the difference in income between reporting using US GAAP and IFRSs?

REFERENCE: Ref.11_01 The following information pertains to inventory held by a company upon December 31,2008. -What is the amount of inventory loss shown on the income statement under IFRSs?

What international organization currently promulgates IFRSs?

REFERENCE: Ref.11_02 The following information pertains to inventory held by a company on December 31,2008. -What is the amount of inventory loss shown on the income statement under US GAAP?

In countries where there are requirements for extensive disclosures in accounting reports,

The U.S.Securities and Exchange Commission (SEC)requires foreign companies that wish to have stocks traded on U.S.stock exchanges to

Which of the following statements is false regarding providers of financing?

Which one of the following countries today most likely does not use a function of expense format to report operating income?

What are the topics covered under the short-term convergence project?

What are the six key FASB initiatives to further convergence?

What are the arguments against accounting harmonization?

Why does each country have its own unique set of financial reporting practices?

Which two EU directives have helped harmonize accounting standards?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements - Intercompany Asset Transactions

Variable Interest Entities, intercompany Debt, consolidated Statement of Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

Accounting for State and Local Governments,part II

Accounting for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters

Exam 11: Worldwide Accounting Diversity and International Accounting Standards

What are measurement differences in international reporting and what would be an example of a difference?

Which of the following items is not one of the ten accounting issues most commonly requiring adjustments in foreign reconciliations to U.S.GAAP?

What are recognition differences in international reporting and what would be an example of a difference?

REFERENCE: Ref.11_01 The following information pertains to inventory held by a company upon December 31,2008. -As a result of inventory loss,what is the difference in income between reporting using US GAAP and IFRSs?

REFERENCE: Ref.11_01 The following information pertains to inventory held by a company upon December 31,2008. -What is the amount of inventory loss shown on the income statement under IFRSs?

What international organization currently promulgates IFRSs?

REFERENCE: Ref.11_02 The following information pertains to inventory held by a company on December 31,2008. -What is the amount of inventory loss shown on the income statement under US GAAP?

In countries where there are requirements for extensive disclosures in accounting reports,

The U.S.Securities and Exchange Commission (SEC)requires foreign companies that wish to have stocks traded on U.S.stock exchanges to

Which of the following statements is false regarding providers of financing?

Which one of the following countries today most likely does not use a function of expense format to report operating income?

What are the topics covered under the short-term convergence project?

What are the six key FASB initiatives to further convergence?

What are the arguments against accounting harmonization?

Why does each country have its own unique set of financial reporting practices?

Which two EU directives have helped harmonize accounting standards?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements - Intercompany Asset Transactions

Variable Interest Entities, intercompany Debt, consolidated Statement of Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

Accounting for State and Local Governments,part II

Accounting for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters