Assets and liabilities, and income and expenses, when material, shall not be offset against each other. Which among the following is not an allowed offsetting? * a.foreign exchange gains and losses B.gain from the proceeds of selling equipment and the related selling expenditures C. share premium and organizational costs D."gain" from donated land and the related cost of transferring the title
Q: 11. In recording exchanges of assets, which statement is not true? a. When boot is received for a…
A: Exchange of Similar assets Accounting for non-monetary transactions should be determined based on…
Q: Which of the following is true about intragroup transfer of property, plant and equipment (PPE) as…
A: Consolidation Statement The basic principle of consolidation the parent company taken over the…
Q: nts and nationalization elaborate on the key issue of compensation on the part of private ownership…
A: When a government-owned firm, enterprise, or property is privatised, it is bought by a private,…
Q: Which of the following statements is/are true concerning property, plant and equipment (PPE)? I. PPE…
A: Property, Plant & Equipment: These are the Company's non cash, long term, physical or tangible…
Q: Which of the following statements is false? a. The monetary unit assumption is used under IFRS.…
A: International Financial Reporting Standards (IFRS): IFRS is a set of international accounting…
Q: among the following is not an allowed offsetting? *
A: Concept of offsetting as per IFRS 1 vis a vis IAS 1 Assets , liabilties , incomes and expenses when…
Q: Gains from remeasuring a foreign subsidiary's financial statements from the local currency, which is…
A: If the functional currency is not the local currency, then it is measured in the U.S. dollar under…
Q: Treatment of Noncash Exchanges. The acquisition of equipment by assuming a mortgage is a transaction…
A:
Q: Transfers from investment property to property, plant and equipment are appropriate a. The…
A: Investment property is the class of asset which is used for the rental or dividend income,…
Q: 6. Which of the following is not considered an appropriate application of offsetting under PAS 1?…
A: Offsetting-: Offsetting, otherwise also named netting, carries place when entities propose their…
Q: Exchange differences arising on a monetary item that forms part of a reporting entity's net…
A: As per IFRS 21 OR PFRS 21 Accounting for foreign currency transactions, Monetary items are units of…
Q: For a non-monetary exchange of plant assets, accounting recognition should not be given to a O a.…
A: for a nonmonetary exchange of plant assets accounting recognition should not be given to "Gain when…
Q: Which of the following nonmonetary exchange transactions may result in recorded gains or losses? A)…
A: Non monetary assets exchange represents swaping of non-monetary assets between two entities.…
Q: A company should immediately recognize: A) any gain when it constructs a piece of equipment at a…
A: Matching principle: According to this principle, the expense should be recognized when it is…
Q: A company is most likely to:A. use a fair value model for some investment property and a cost model…
A: SOLUTION:- A company is most likely to change from the fair value model when the company transfers…
Q: According to China accounting standards indicates that goodwill normally is Select one: a.…
A: At the time of acquisitions of one company, the other company is required to pay more amount than…
Q: Which of the following is/are not capitalized as an intangible asset?
A: Step 1 As per intangible assets, in business combination we separately identify the intangible…
Q: Under IFRS, the recoverable amount of an asset is The higher of an asset’s value in use or its…
A: Impairment of an asset: Impairment is the loss that occurs due to, unexpected decrease in the market…
Q: PAS 16 states that if an exchange transaction causes a significant change in cash flows, the…
A: PAS 16, PROPERTY PLANT AND EQUIPMENT states that if their is an exchange of assets or partial…
Q: Which of the following statements are correct? I. Borrowing costs incurred in the acquisition,…
A: Answer is Option c) Both I and II
Q: a) In your own words, explain how do we account for service costs included within a contract to…
A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…
Q: gain from the sale or exchange of property which is not a capital asset
A: Second option is wrong because gross income is the income before allowing deductions. Third option…
Q: 1. Which of the following creates the largest temporary differences (think taxes): a. Other…
A: A temporary difference is explained as the differences between the amount of asset or liability…
Q: Explain the ‘qualifying asset’ and how do we treat exchange rate differences relating to the…
A: The question is related to Borrowed Cost. Borrowed cost are those cost that are directly…
Q: Depreciation is based on the fair value of assets. An impairment loss occurs if the carrying value…
A: GIVEN Depreciation is based on the fair value of assets. An impairment loss occurs if…
Q: Explain the ‘qualifying asset’ and how do we treat exchange rate differences relating to the…
A: A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for…
Q: true or false ___________ if the fair value of the asset given u[ in exchange transaction that has…
A: Fair market value: It is the value of the fixed asset on which a particular asset is being sold in…
Q: Which one of the following is not true concerning the treatment of investment properties under IAS…
A: If an investment property is held at fair value, this would not apply to all of the entity's…
Q: ell International can estimate the amount of loss that will occur if a foreign government…
A: Contingent Liability Contingent liability is one form of liability that arises based on a particular…
Q: Gains from remeasuring a foreign subsidiary’s financial statements from the local currency, which is…
A: This question requires knowledge of remeasuring gains. A foreign subsidiary's functional currency…
Q: The main difference between U.S. accounting standards and international accounting standards when…
A: US GAAP refers to the accounting standards that are endorsed by the Securities and Exchange…
Q: Ringler Corporation exchanges one plant asset for a similar plant asset and gives cash in the…
A: The exchange of asset in the given case is not expected to cause any material gain or any changes in…
Q: Which exchange has commercial substance? Select the correct response: exchange of assets with…
A: Lets understand the basics. When there is change in future cashflow of the business due to…
Q: When cash is involved in an exchange having commercial substance _________________. a. a gain or…
A: Exchange having commercial substance. A commercial substance exists when cashflows from assets…
Q: (Based on Appendix 12B) Reporting an investment at its fair value requires adjusting its carrying…
A: Available for sale securities: These are the securities which are not intended to be sold in the…
Q: In your own words, briefly explain a 'qualifying asset' and how we report exchange rate differences…
A: The question is related to Borrowing Cost. As per Borrowing Cost there are two types of Assets 1.…
Q: Which one of the following is not true concerning the treatment of investment properties under LKAS…
A: Solution: As per LKAS 40. the investment property is measured at cost including…
Q: which of the following statements in relation to the cost of the asset is true? A. all of the…
A: The balance sheet represents the financial position of the business with assets, liabilities on a…
Q: Transfers of investments between categories a. Should always affect net income b. Are accounted…
A: Transfer of an Investment:- It is a procedure where one company or entity sells its investment to…
Q: Ringler Corporation exchanges one plant asset for a similar plant asset and gives cash in the…
A: Asset Disposal: An asset disposal refers to selling a long term asset that has been depreciated over…
Q: A transfer from investment property carried at fair value to owner-occupied property shall be…
A: Investments: Investment is defined as an allocation of money with the prospect of some future…
Q: Other comprehensive income includes the following, except A. unrealized gain on derivative contract…
A: Comprehensive income statement: It shows all the income earned by the business during an accounting…
Q: Assets and liabilities, and income and expenses, when material, shall not be offset against each…
A: Foreign exchange gains and losses are permissible to be offset against each other. An entity may…
Q: cost of the new asset acquired
A: Cost of acquisition of new asset = Carrying amount of exchanged asset + Cash difference paid
Q: In which of the following areas does the IASB not allow firms to choose between two acceptable…
A: a. Measuring property, plant, and equipment subsequent to acquisition: This is an incorrect option…
Q: The following are properly classified as capital expenditure, except:
A: Capital expenditure is the amount spent by the business to acquire ,…
Q: The cost of a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange…
A: A fixed asset exchanged for Commercial substance means that the future cash flows are expected to…
Q: Which of the following statements is true for the translation process using the current rate method?…
A: Translation process under current method: A translation adjustment is created by the change in the…
Step by step
Solved in 2 steps
- Assets and liabilities, and income and expenses, when material, shall not be offset against each other. Which among the following is not an allowed offsetting? * a. foreign exchange gains and losses b. gain from the proceeds of selling equipment and the related selling expenditures c. share premium and organizational costs d. "gain" from donated land and the related cost of transferring the titleAssets and liabilities, and income and expenses, when material, shall not be offset against each other. Which among the following is not an allowed offsetting? * foreign exchange gains and losses gain from the proceeds of selling equipment and the related selling expenditures share premium and organizational costs "gain" from donated land and the related cost of transferring the titleWhich of the following statements in incorrect? a. Donations of PPE should be recorded at the fair value of the donated asset at the time of donation. b. Property acquired in exchange for shares or other securities in the enterprise should be recorded at its fair value or the fair value of the securities, whichever is more clearly evident c. When property is acquired in exchange for another asset without commercial substance, no gain nor loss is recognized d. When a group of assets is acquired for a lump sum price, the total cost should be allocated to the individual assets based on their carrying amounts.
- Transfers of investments between categories a. Should always affect net income b. Are accounted for at fair value for all transfers c. Result in omitting recognition of fair value in the year of the transfer. d. Are not recognized if investments are transferred from held for collection to fair valueAll of the following statements are true, except: When property is acquired in exchange for another, its cost is usually determined by reference to the fair value of the asset surrendered When a group of assets is acquired for a lump sum price, the lump sum price should be allocated to the individual assets based on their carrying values. Donation of PPE should be recorded at the fair value of the donated asset Property acquired in exchange for shares or other securities of the enterprise should be recorded at its fair value or the fair value of the securities, whichever is more clearly evident1. Which of the following creates the largest temporary differences (think taxes): a. Other liabilities b. Share-based compensation c. Equity method investments d. Trademarks and other intangibles e. Property, plant and equipment
- The cost of a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange has commercial substance is usually recorded at A) either the fair value of the asset given up or the asset received, whichever one results in the largest gain (smallest loss) to the company. B) the fair value of the asset received if it is equally reliable as the fair value of the asset given up. C) the fair value of the asset given up, and a gain or loss is recognized. D) the fair value of the asset given up, and a gain but not a loss may be recognized.All of the following statements are true, except: * a. When property is acquired in exchange for another, its cost is usually determined by reference to the fair value of the asset surrendered b. Property acquired in exchange for shares or other securities of the enterprise should be recorded at its fair value or the fair value of the securities, whichever is more clearly evident c. Donation of PPE should be recorded at the fair value of the donated asset d. When a group of assets is acquired for a lump sum price, the lump sum price should be allocated to the individual assets based on their carrying values.Which of the following is not one of the components of other comprehensive income? a. changes in revaluation surplus b. remeasurements of the net defined benefit liability (asset) unrealized gains and losses on FVPL c. translation gains and losses on foreign operation d. effective portion of gains and losses on hedging instruments on a cash flow hedge
- true or false ___________ if the fair value of the asset given u[ in exchange transaction that has a commercial substance is not realibly determinable, the asset receive is measured at its fair value, adjusted for any cash received or paid in the exchange. _________ If a party in an exchange transaction recognizes gain, this presupposes a loss on the part of other contracting party _________ PPE acquired by issuing securities are always recognized at the fair value of the securities issued. ___________ A PPE from donation is initially recognized at the fair value of the asset given up1. When reclassification is made from owner occupied property to investment property that will be carried at fair value, any excess of the fair value over the carrying amount at the date of transfer is a. ignored. b. recognized as a gain in profit or loss, c. credited to asset revaluation surplus. d. recorded as a credit to a liability account2. Which of the following are valid statements regarding measurement of investment property? I. The best evidence of fair value is current price in an active market for similar property in the same location and condition.II. When items of investment property are measured at fair values, any movement in fair value is credited to other comprehensive income under the heading revaluation surplus.III. An entity shall continue to measure an investment property at fair value until its disposal if it has previously valued the property at fair value.IV. Transaction costs directly attributable to acquisition of investment property are capitalized as…(a) In your own words, explain how do we account for service costs included within a contract to lease an asset? (b) Briefly explain how a company calculates its current liability 'income tax payable'? (c) In your own words, explain why a temporary difference relating to employee benefits obligations for long-service leave creates a deferred tax asset (d) In your own words, briefly explain a 'qualifying asset' and how we report exchange rate differences relating to the acquisition of qualifying assets? Contrast this with the treatment for assets that are not qualifying assets