Exam 14: International Financial Reporting Standards

When comparing U.S.GAAP and IFRS,regarding the level of details in the standards and the level of disclosure required,which of the following is correct? U.S.GAAP IFRS

The cost of Fulton's inventory at the end of the year was $145,000.Due to obsolescence,the cost to replace the inventory was only $90,000.Net realizable value-what the inventory could be sold for-is $102,000. REQUIRED: Determine the amount Fulton should report on its year-end balance sheet for inventory assuming the company follows (a)U.S.GAAP and (b)IFRS.

The state of economic development can affect accounting standards.

In countries,like Japan and much of Europe,fewer differences between the amount of income reported to stockholders and that reported to the taxing authorities exist than in the U.S.

All of the following statements are true about inflation except:

Which organization would have the ultimate responsibility of deciding if the advantages outweigh the disadvantages in the adoption of IFRS accounting standards in the U.S.?

What is the name for the balance sheet under international accounting standards?

Both U.S.GAAP and IFRS classify gains and losses that are both unusual in nature and infrequent in occurrence as extraordinary and present them in a separate section of the income statement.

All of the following are among the most important reasons why accounting standards differ around the world except:

What is the name of the formalized commitment of the IASB and the FASB to converge U.S.and international accounting standards?

Which of the following is a commonly cited disadvantage of having a new unified set of accounting standards?

How would you describe the current role of the IASB in setting accounting standards?

Significant differences exist in terms on financial statements around the world.For example,another name for what we know as Additional Paid-In Capital in the U.S.is:

A single set of accounting standards could help a U.S.company save time and money in the acquisition of a German company.

Ultimately,it will be the responsibility of the FASB in the U.S.to decide if the advantages of IFRS's outweigh the disadvantages.

Discuss at least four reasons that accounting standards currently differ between countries.

How does the application of the lower-of-cost-or-market rule differ between U.S.GAAP and IFRS?

The International Accounting Standards Committee was established in 1973 to develop worldwide standards.Which group replaced it in 2001?

While U.S.GAAP requires a complete set of financial statements,including a balance sheet,statement of stockholders' equity,income statement,and statement of cash flows,IFRS does not.

The U.S.accounting standards are more principle-based than IFRS.