How do U.S. GAAP and IFRS differ in their treatment of a range of equally likely losses?

Q: How do IFRS and U.S. GAAP differ with respect to the classification of debt that is expected to be…

A:

Q: Which of the following statements is correct regarding reporting of “Extraordinary gains and losses”…

A: The extraordinary gains and losses are the gains and losses that do not gain or incurred in the…

Q: How will we recognise any fair value gain arising from a change in fair value of an investment…

A: Investment Property:   An investment property is a property in the form of land or building that are…

Q: Are there circumstances in which the cost method is required under U.S. GAAP but not under IFRS?…

A: IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring…

Q: Which one of the following is not true concerning the treatment of investment properties under IAS…

A: Upon Initial recognition, the investment property shall be measured either at cost or fair value.…

Q: With regard to the correction of accounting errors, what is the difference between U.S. GAAP and…

A: Generally Accepted Accounting Principles:   GAAP (Generally Accepted Accounting Principles) is a…

Q: Briefly explain the differences between U.S. GAAP and IFRS in the measurement of an impairment loss…

A: Under International Financial Reporting Standards (IFRS), the impairment loss is recognized, when an…

Q: What is the different between conventional and islamic on asset

A: Conventional assets:  Conventional assets are the assets that comprise of stocks, bonds, and cash.…

Q: Why allow the fair value option for financial assets and liabilities and not for, say, buildings or…

A:

Q: What disclosures are required for remote likelihood of losses?

A: Likelihood of losses means chance of occuring loss in some future events of the business. Likelihood…

Q: How do the non-GAAP measures differ from related official GAAP measures?

A: Generally Accepted Accounting Principles  or GAAP  provides an uniform set of rules and formats…

Q: Which of the following statements is true?(a) The fair value option requires that some types of…

A: Answer:   Option c.

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to investments.

A: GAAP: It is the standard guidelines that are commonly used for financial reporting. These guidelines…

Q: Explain the differences between US GAAP and IFRS in the calculation of a goodwill impairment loss in…

A: Answer: Goodwill is the type of asset that are intangible in nature. It is tested for annual…

Q: Explain how electing the fair value option and how impairment recognition affectaccounting for…

A: Definition: Impairment: It is a situation that arises when the carrying value of the investment…

Q: If an asset is written down because of an impairment, in USA GAAP, it cannot be written back up…

A: PROVISIONS FOR REVERSAL OF IMPAIRMENT LOSS UNDER THE FOLLOWING STANDARD :- USA GAAP IFRS…

Q: How do the impairment test for indefinite-lived intangible assets and definite-lived intangible…

A: Impairment is the permanent reduction in the value of the asset. Circumstances that indicate…

Q: Based on Appendix 12B) How does IFRS differ from current U.S. GAAP in accounting for…

A: When the asset value reduces due to market or technological factors which it turn fall below its…

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to current liabilities and…

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: 18. Which of the following statements is Incorrect? * The fair value of investment property shall…

A: Investment- Investment is defined as the purchase of an asset in order to generate income or capital…

Q: . Which of the following statements is true? a.    The fair value option requires that some types of…

A: The fair value option allows, but does not require, that some types of financial instruments be…

Q: What is the fair value option? Briefly describe the controversyof applying the fair value option to…

A: Meaning of fair value option:

Q: Which among the following advocates for accounting all the prospective losses but leave aside all…

A: Solution: Conservatism convention  advocates for accounting all the prospective losses but leave…

Q: Discuss the rules for related party loss limitations.

A: The IRS has define rule regarding the transactions with the related parties and the treatment of…

Q: How does IFRS differ from current U.S. GAAP with respect to accounting for impairments?

A: When the asset value reduces due to market or technological factors which it turn fall below its…

Q: When using the fair value method, we adjust the reported amount of the investment for changes in…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which of the following cases would result in an actuarial loss? Projected benefit obligation…

A: As per IFRS, Actuarial gains and losses are changes in the present value of the defined benefit…

Q: Which of the following is not an alternative for a capital charge for Operational Risk as stated in…

A: Operational risk means the risk arriving during the human error or system error. It is not at all…

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: Which of the following subsequent expenditures would not be capitalized?

A: Ordinary repairs and maintenance expenditure would not be capitalized.

Q: Is the nature of the gainor loss considered ordinary or long-term?

A: Ordinary gain or loss means any income which doesn't result as Capital gain or loss. Capital Gain or…

Q: Is the threshold for recognizing a provision under IFRS different than it is under U.S.GAAP?…

A:

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to revenue recognition.

A: IFRS revenue recognition is directed by two primary standards and four general interpretations. On…

Q: How do U.S. GAAP and IFRS differ in their use of present values when measuring contingent…

A: Contingent Liability Contingent liability is one form of liability that arises based on a particular…

Q: When are losses in noncurrent security investments recognized?

A: Noncurrent security investments are held for more than 1 year.

Q: What serious consequences occur in an inaccurate estimate of asset needs?

A: Estimates of assets:   It is approximate value of assets of original value of assets which is used…

Q: Why do somew companies report "Non-GAAP" measures?

A: Non GAAP measures are the measures opted by the companies to show some aspects outside the financial…

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: What is the primary difference between interim reports under IFRS and U.S. GAAP?

A: IFRS and GAAP:

Q: What disclosure is required for a probable loss contingency?

A: Contingent liability: This is an uncertain obligation which might be incurred on a future date as a…

Q: what is the impact if there is. any material misstatement in the goodwill valuation that is on whom…

A: Definition:

Q: Just briefly describe how impairment losses for goodwill are calculated under U.S. GAAP and IFRS,…

A: The answer

Q: Under what circumstances should a loss contingency be accrued?

A: Loss contingency: Loss contingency is contingency where existing situation or circumstances where…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.