Question 1

What are the six key FASB initiatives to further convergence?

Accepted Answer

The six key FASB initiatives to further

Question 2

A company sells a building to a bank in 2013 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 had a book value of $50,000 at the date of the sale.
As a result of the sale and leaseback transaction in 2013, what is the difference between income using U.S. GAAP and IFRS in 2013?

Accepted Answer

A)  U.S. GAAP income is $80,000 higher. 
B)  U.S. GAAP income is $100,000 higher. 
C)  IFRS income is $50,000 lower. 
D)  IFRS income is $100,000 lower. 
E)  IFRS income is $80,000 higher. 
A)  U.S. GAAP income is $80,000 higher. 
B)  U.S. GAAP income is $100,000 higher. 
C)  IFRS income is $50,000 lower. 
D)  IFRS income is $100,000 lower. 
E)  IFRS income is $80,000 higher.

Question 3

Which of the following is not an IFRS pronouncement originally issued by the IASB?

Accepted Answer

A)  Business Combinations. 
B)  First-Time Adoption of IFRS. 
C)  Financial Instruments: Disclosures. 
D)  Agriculture. 
E)  Operating Segments. 
A)  Business Combinations. 
B)  First-Time Adoption of IFRS. 
C)  Financial Instruments: Disclosures. 
D)  Agriculture. 
E)  Operating Segments.

Question 4

Convergence of accounting standards would not occur by:

Accepted Answer

A)  FASB adopting an existing IASB standard. 
B)  IASB adopting an existing FASB standard. 
C)  IASB issuing a new standard. 
D)  IASB and FASB jointly developing a new standard. 
E)  IASB and FASB each issuing a similar but not identical standard. 
A)  FASB adopting an existing IASB standard. 
B)  IASB adopting an existing FASB standard. 
C)  IASB issuing a new standard. 
D)  IASB and FASB jointly developing a new standard. 
E)  IASB and FASB each issuing a similar but not identical standard.

Question 5

The following information pertains to inventory held by a company on December 31, 2013.   As a result of inventory loss, what is the difference in income between reporting using U.S. GAAP and IFRS?

Accepted Answer

A)  U.S. GAAP income is $3,000 higher. 
B)  U.S. GAAP income is $10,000 lower. 
C)  IFRS income is $8,400 higher. 
D)  IFRS income is $3,000 lower. 
E)  IFRS income is $5,400 higher. 
A)  U.S. GAAP income is $3,000 higher. 
B)  U.S. GAAP income is $10,000 lower. 
C)  IFRS income is $8,400 higher. 
D)  IFRS income is $3,000 lower. 
E)  IFRS income is $5,400 higher.

Question 6

Which of the following are not authoritative pronouncements of International Financial Reporting Standards (IFRSs)?
1) International Financial Reporting Standards issued by the IASB
2) International Accounting Standards issued by the IASC and adopted by the IASB
3) Interpretations originated by the International Financial Reporting Interpretations Committee (IFRIC)
4) U.S. Generally Accepted Accounting Principles

Accepted Answer

A)  4 only. 
B)  3 and 4. 
C)  1, 3, and 4. 
D)  2, 3, and 4. 
E)  1, 2, 3, and 4. 
A)  4 only. 
B)  3 and 4. 
C)  1, 3, and 4. 
D)  2, 3, and 4. 
E)  1, 2, 3, and 4.

Question 7

The following information pertains to inventory held by a company on December 31, 2013.   What amount of inventory should be reported under IFRS?

Accepted Answer

A)  $25,000. 
B)  $27,000. 
C)  $30,000. 
D)  $5,000. 
E)  $2,000. 
A)  $25,000. 
B)  $27,000. 
C)  $30,000. 
D)  $5,000. 
E)  $2,000.

Question 8

A company sells a building to a bank in 2013 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 had a book value of $50,000 at the date of the sale.
What amount should be recognized in 2013 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 9

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?

Accepted Answer

When banks dominate financing, there is

Question 10

The IASB and FASB are working on several joint projects. What is the purpose of the Financial Statement Presentation Project?

Accepted Answer

A)  to provide guidance on the application of the acquisition method. 
B)  to enhance the usefulness of information in assessing the financial performance of the reporting enterprise. 
C)  to develop a common comprehensive standard on revenue recognition. 
D)  to develop a common conceptual framework that both boards can use as a basis for future standard-setting. 
E)  to agree upon financial statement titles that will have no differentiation after translation to various languages. 
A)  to provide guidance on the application of the acquisition method. 
B)  to enhance the usefulness of information in assessing the financial performance of the reporting enterprise. 
C)  to develop a common comprehensive standard on revenue recognition. 
D)  to develop a common conceptual framework that both boards can use as a basis for future standard-setting. 
E)  to agree upon financial statement titles that will have no differentiation after translation to various languages.

Question 11

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

Accepted Answer

IFRSs can be used by a country by (1) ad

Question 12

A company acquired a new piece of equipment on January 1, 2011 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 depreciated on a straight-line basis. On January 1, 2013, 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 31, 2013 balance sheet under the IFRS cost model?

Accepted Answer

A)  $160,000 
B)  $150,000 
C)  $146,000 
D)  $140,000 
E)  $116,000 
A)  $160,000 
B)  $150,000 
C)  $146,000 
D)  $140,000 
E)  $116,000

Question 13

The types of differences that exist between IFRS and U.S. GAAP would not generally include:

Accepted Answer

A)  Presentation differences. 
B)  Measurement differences. 
C)  Disclosure differences. 
D)  Comparability differences. 
E)  Recognition differences. 
A)  Presentation differences. 
B)  Measurement differences. 
C)  Disclosure differences. 
D)  Comparability differences. 
E)  Recognition differences.

Question 14

Which of the following are not key FASB initiatives to further converge IFRS and U.S. GAAP?

Accepted Answer

A)  Short-term convergence projects. 
B)  Joint projects sharing FASB and IASB staff resources. 
C)  Having the IASB Chairman in-residence at the FASB office. 
D)  Monitoring ongoing IASB projects. 
E)  Researching differences between U.S. GAAP and IFRS. 
A)  Short-term convergence projects. 
B)  Joint projects sharing FASB and IASB staff resources. 
C)  Having the IASB Chairman in-residence at the FASB office. 
D)  Monitoring ongoing IASB projects. 
E)  Researching differences between U.S. GAAP and IFRS.

Question 15

A company sells a building to a bank in 2013 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 had a book value of $50,000 at the date of the sale.
What amount should be recognized as a gain in 2013 using IFRS?

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 16

What is the IOSCO?

Accepted Answer

IOSCO is an organization of stock exchan

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 following information pertains to inventory held by a company at December 31, 2013.   As a result of inventory loss, what is the difference in income between reporting using U.S. GAAP and IFRS?

Accepted Answer

A)  U.S. GAAP income is $1,000 higher. 
B)  U.S. GAAP income is $2,000 lower. 
C)  IFRS income is $1,000 higher. 
D)  IFRS income is $1,000 lower. 
E)  IFRS income is $5,000 higher. 
A)  U.S. GAAP income is $1,000 higher. 
B)  U.S. GAAP income is $2,000 lower. 
C)  IFRS income is $1,000 higher. 
D)  IFRS income is $1,000 lower. 
E)  IFRS income is $5,000 higher.

Question 19

Principal Company is a U.S.-based company that prepares its consolidated financial statements in accordance with U.S. GAAP. Principal reported net income of $2,600,000 in 2013 and stockholders' equity of $12,000,000 at December 31, 2013. Principal wants to determine the reporting impact of switching to IFRS. The following three items would create differences in financial reporting:
1) At December 31, 2013, inventory had a historical cost of $850,000, a replacement cost of $700,000, and a net realizable value of $800,000. The normal profit margin was 10%.
2) Principal acquired a building at the beginning of 2011 at a cost of $5,000,000. The building has an estimated useful life of 20 years, an estimated residual value of $1,000,000, and is being depreciated on a straight-line basis. On January 1, 2013, the building has a fair value of $5,500,000. There is no change in the estimated useful life or residual value. In a switch to IFRS, Principal would use the revaluation model in IAS 16 to determine the carrying value of property, plant, and equipment subsequent to acquisition.
3) In 2013, Principal incurred $800,000 of research and development for a new product, of which 35% relates to development activities subsequent to the point at which criteria indicating the creation of an intangible asset had been met. As of the end of 2013, development of the new product had not been completed.
Required:
1) Prepare a schedule reconciling net income under U.S. GAAP to net income under IFRS for the year ended December 31, 2013.
2) Prepare a schedule reconciling stockholders' equity under U.S. GAAP to stockholders' equity under IFRS at December 31, 2013.

Accepted Answer

@#IMG-DLM&_TB2311_00

Question 20

In the United States, foreign companies filing annual reports with the SEC that are not prepared in accordance with U.S. GAAP must:

Accepted Answer

A)  present financial statements that comply with international GAAP. 
B)  conform with U.S. GAAP or 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)  use IFRS, or use foreign GAAP and provide a reconciliation to U.S. GAAP. 
A)  present financial statements that comply with international GAAP. 
B)  conform with U.S. GAAP or 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)  use IFRS, or use foreign GAAP and provide a reconciliation to U.S. GAAP.

What are the six key FASB initiatives to further convergence?

Which of the following is not an IFRS pronouncement originally issued by the IASB?

Convergence of accounting standards would not occur by:

The following information pertains to inventory held by a company on December 31, 2013. As a result of inventory loss, what is the difference in income between reporting using U.S. GAAP and IFRS?

The following information pertains to inventory held by a company on December 31, 2013. What amount of inventory should be reported under IFRS?

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?

The IASB and FASB are working on several joint projects. What is the purpose of the Financial Statement Presentation Project?

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

The types of differences that exist between IFRS and U.S. GAAP would not generally include:

Which of the following are not key FASB initiatives to further converge IFRS and U.S. GAAP?

What is the IOSCO?

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

The following information pertains to inventory held by a company at December 31, 2013. As a result of inventory loss, what is the difference in income between reporting using U.S. GAAP and IFRS?

In the United States, foreign companies filing annual reports with the SEC that are not prepared in accordance with U.S. GAAP must:

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 Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated 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

Accounting for State and Local Governments

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters

Exam 11: Worldwide Accounting Diversity and International Accounting Standards

What are the six key FASB initiatives to further convergence?

Which of the following is not an IFRS pronouncement originally issued by the IASB?

Convergence of accounting standards would not occur by:

The following information pertains to inventory held by a company on December 31, 2013. As a result of inventory loss, what is the difference in income between reporting using U.S. GAAP and IFRS?

The following information pertains to inventory held by a company on December 31, 2013. What amount of inventory should be reported under IFRS?

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?

The IASB and FASB are working on several joint projects. What is the purpose of the Financial Statement Presentation Project?

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

The types of differences that exist between IFRS and U.S. GAAP would not generally include:

Which of the following are not key FASB initiatives to further converge IFRS and U.S. GAAP?

What is the IOSCO?

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

The following information pertains to inventory held by a company at December 31, 2013. As a result of inventory loss, what is the difference in income between reporting using U.S. GAAP and IFRS?

In the United States, foreign companies filing annual reports with the SEC that are not prepared in accordance with U.S. GAAP must:

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 Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated 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

Accounting for State and Local Governments

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters