en transforming the financial statements in the real life. These differences should concern the following accounting standard
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Identify and explain the main differences in the treatment of the elements of the financial statements between NAS and IFRS that might arise when transforming the financial statements in the real life. These differences should concern the following accounting standards:
a) Property, plant and equipment IAS 16;
b) Inventory IAS 2;
c) Financial instruments: recognition and measurement IAS 39; and
d) Intangible assets IAS 17.
e) Other standards at your consideration (additional)
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Solved in 2 steps
- Identify and explain the main differences in the treatment of the elements of the financial statements between NAS and IFRS that might arise when transforming the financial statements in the real life.The issues that the FASB and IASB must address in developing a conceptual framework include all of the following except: a. should the characteristic of relevance be traded-off in favor of information that is verifiable? b. should a single measurement method such as historical cost be used? c. what are the key elements of asset and liability definitions? d. should the role of financial reporting focus solely on internal decision-making?Discuss the main challenges in recognising and measuring intangible assets, suchas brands, in an entity's individual statement of financial position.
- Choose the correct.Which of the following statements concerning U.S. GAAP is true?a. Does not require segment information to be reported in accordance with generally accepted accounting principles.b. Does not require a reconciliation of segment assets to consolidated assets.c. Requires geographic area information to be disclosed in interim financial statements.d. Requires disclosure of a major customer’s identity.Outline the accounting treatment of financial asset impairments according to IFRS 9 Financial Instruments and discuss the potential benefits and drawbacks of this approach.Which of the following statements about the FASB conceptual framework, as compared to the IASB conceptual framework is most correct? Group of answer choices A)The FASB framework allows for upward revaluations of tangible, long-lived assets. B)The FASB framework and IASB framework are now fully converged. C)The FASB framework lists revenue, expenses, gains, losses, and comprehensive income related to financial performance.
- Recognition is the process of: A. Capturing, for inclusion in the statement of financial position or the statement(s) of financial performance, an item that meets the definition of one of the elements of the financial statements—an asset, a liability, equity, income or expenses B. Determining where an item should be presented in the financial statements C. Sorting assets, liabilities, equity, income or expenses on the basis of shared characteristics D. Adding together of assets, liabilities, equity, income or expenses that have shared characteristicsWhich of the following statements about IFRS and U.S. GAAP accounting and reporting requirements for the balance sheet is not correct? a. Both IFRS and GAAP allow the use of title “balance sheet” or “statement of financial position.” b. One difference between the reporting requirements under IFRS and those of U.S. GAAP balance sheet is that an IFRS balance sheet may list long-term assets first. c. Both IFRS and U.S. GAAP require that comparative information be reported. d. Both IFRS and U.S. GAAP require that property, plant and equipment be revalued on the balance sheet.For each class of financial assets and liabilities, the entity shall disclose the fair value of that class of financial assets and liabilities in a manner that allows comparison with the corresponding carrying amount on the balance sheet. Why do you think that these disclosures contribute to improving the quality of information for users of financial statements? Comment critically
- Choose the correct. Which of the following items is required to be disclosed by geographic area?a. Total assets.b. Revenues from external customers.c. Profit or loss.d. Capital expenditures.Which of the following statements about IFRS and GAAP accounting and reporting requirements for the balance sheet is not correct? a. Both IFRS and GAAP distinguish between current and non-current assets and liabilities. b. The presentation formats required by IFRS and GAAP for the balance sheet are similar. c. Both IFRS and GAAP require that comparative information be reported. d. One difference between the reporting requirements under IFRS and those of the GAAP balance sheet is that an IFRS balance sheet may list long-term assets first.Both standards of IAS 16 and IAS 40 are very similar in nature and share certain common guidelines as well. However, it should be noted that the differences between IAS 16 and IAS 40 will be affecting the company’s performance reporting. To determine the application of respective standards, depend on the nature, business model and usage of the non current asset. The reporting entities are required to comply with IAS40/MFRS 140 in relates to the accounting treatment of investment property upon the determination and classification of property. Wonderful company owns a land which have yet to decide on the development of the land. The land was purchased for RM30 million on 1 January 2019 and had a market value of RM48 million on 31 March 2020. Management wish to measure the land at fair value where this is allowed by accounting standards. The company has 31 December of financial year ends. Although the disclosure of the fair value of investment properties enhances the ability of investors…