How do U.S. GAAP and IFRS differ in their use of present values when measuring contingent liabilities?

Q: rence rat

A: Introduction :  In simple words, Reference rate can be understood as the rate that is utilized to…

Q: In the interest parity condition, why does the market exchange rate relate negatively to the…

A: The exchange rate is the rate at which currencies are exchanged for one another in the foreign…

Q: What are the differences in accounting for a forward contract used as a fair value hedge of (a) a…

A: Forward contract:   Forward contract is the contract entered by two private parties to buy or sell a…

Q: What is the requirement on Federal Truth-in-Lending (FTL)?

A: Following are the requirements of Federal Truth-in-Lending (FTL):   The financial data: The plan of…

Q: Explain Options to Report Liabilities at Fair Value.

A: Introduction FASB introduces Fair Value Options to report assets and liabilities in fair value,…

Q: Which of the following costs may not be eligible for capitalization as borrowing costs under PAS 23?…

A: The costs that an entity incurs with regard to the funds borrowed are referred to as the borrowing…

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: How are the terms “probable,” “reasonably possible,”and “remote” related to contingent liabilities?

A:

Q: State the purposes for which the securities premium reserve can be utilised.

A: Securities premium:Securities premium is the gain earned by the company, by issuing a share of a…

Q: Which statement is correct regarding fair value hedges and cash flow hedges of a foreign currency…

A: Fair value hedges are used to mitigate risk of changes in the fair value of assets or liabilities.…

Q: what does it mean by " How secure are documentary payment terms" in international trade?

A: International trade refers to exchange of the services and the goods between nations. Consumers and…

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: Which of the following items is remeasured using the current exchange rate under the temporal…

A:

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

A: Meaning of fair value option:

Q: Why are U.S. government securities viewed differently from state and local government securities in…

A: The question is based on the concept of risk of default in bond investment. The default risk is…

Q: aims of the Basel II capital accords

A: The Basel Committee on Bank Supervision (BCBS) established the Basel Accords, a series of three…

Q: esent discounted value of the sum of trade deficits and surpl

A: Trade surplus refers to the economic measurement of positive balances of trade where the country…

Q: How is the Equivalence Calculations made with Effective Interest Rates?

A: The formula for Effective annual rate is  Where, r - rate of return n - number of compounding.…

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: 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: Which of the following would be considered a Eurodollar deposit?

A: Eurodollars refer to dollars denominated at overseas banks or overseas branches of America. The…

Q: Which of the following liabilities would be considered nonrecourse?

A: "As the student have not been given the options to choose the nonrecourse liabilities, I will give…

Q: What guidance does the Codification provide on the classification of current liabilities?

A: Current liability is a liability which is to be paid in next 12 months

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 does IFRS differ from U.S. GAAP with respect to using the equity method?

A: Equity method:

Q: Describe the terms of  Contingent Liabilities with examples.

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

Q: When are losses in noncurrent security investments recognized?

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

Q: Explain how changes in interest rates are likely to affect exchange rates.

A: General Introduction: Exchange rates are very important factor in determining country's economic…

Q: n the interest parity condition, why does the exchange rate relate negatively to the interest rate?

A: Interest rate parity theory is a theory that identifies the relationship between the spot exchange…

Q: Describe techniques for “hedging” againstlosses from fluctuations in exchange rates.

A: Hedging is the strategies used for reducing the risks and impacts of negative changes or…

Q: What are the differences in accounting for a forward contract used as (a) a cash flow hedge and (b)…

A: a.

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

A: IFRS and GAAP:

Q: Discuss the need to include the leverage ratio and off-balance sheet assets in Basel III

A: Leverage ratio in Basel III was introduce to reduce the risk of such periods of deleveraging in…

Q: What are some steps taken by both the FASB and IASB to move to fair value measurement for financial…

A: International Financial Reporting Standards: IFRS (International Financial Reporting Standards) is a…