Exam 11: Worldwide Accounting Diversity and International Accounting Standards

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 U.S.GAAP?

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 US GAAP?

The IASB and FASB are working on several joint projects.What is the purpose of the Business Combinations Project?

Which authoritative pronouncement does not make up the International Financial Reporting Standards (IFRSs)? 1)International Financial Reporting Standards issued by the IASB 2)International Accounting standards issued by the IASC adopted by the IASB 3)Intrepretations originated by the International Financial Reporting Interpretations Committee (IFRIC) 4)US Generally Accepted Accounting Principles

REFERENCE: Ref.11_02 The following information pertains to inventory held by a company on December 31,2008. -As a result of inventory loss,what is the difference in income between reporting using US GAAP and IFRSs?

The major providers of financing in some countries are stockholders,while other countries predominantly use banks as the main financing source.What difference does it make to accounting disclosures in comparing a company from one of each of those countries?

What are the different ways IFRSs can be used?

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 IFRSs?

In countries of Latin America,

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 as a gain in 2008 using IFRSs?

What are the two major types of legal systems used around the world?

In countries where there is less pressure for public accountability and information disclosure

Which one of the following countries is in the macro class of accounting systems?

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. -As a result of research and development costs,what is the difference in income between reporting using US GAAP and IFRSs in 2008?

The standard-setting organization in Canada today is the

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

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 alternative treatment?

For Japanese companies,what is the primary source of financing?