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IFRS GAAP and U.S. GAAP agree most of the time. In which instance might their disagreement have a big impact on an investment decision?
A. revenue recognition
B.
C. plant, property and equipment
D. accelerated
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- Which of the following refers to the similarity between the U.S. GAAP and IFRS regarding accounting for Long-Lived Assets? Depreciation is based on the fair value of assets. An impairment loss occurs if the carrying value exceeds the recoverable amount, defined as the higher of the asset’s fair value (less costs to sell) and its value in use, which is the discounted net cash flows. For the purposes of determination which expenses may be capitalized, Research and Development expenditures are treated differently. Intangible assets are acquired at amortized cost.Choose the correct. In which of the following areas does the IASB not allow firms to choose between two acceptable treatments?a. Measuring property, plant, and equipment subsequent to acquisition.b. Measuring noncontrolling interest in a business combination.c. Recognizing development costs that meet criteria for capitalization as an asset.d. Classifying interest paid in the statement of cash flows.q13 According to IFRS, which accounting policy may an entity apply to measure investment property in periods subsequent to initial recognition? Select one: a. Fair value model or revaluation model. b. Cost model or fair value model c. Fair value model only. d. Cost model or revaluation model.
- 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 titleUS GAAP generally follows historical cost accounting in reporting property, plant, and equipment (PP&E). IFRS is moving towards fair value accounting with respect to reporting PP&E. Which approach do you think is preferable? What are the pros & cons of each? In your analysis, keep in mind the point of view's of the public users, internal users, and practitioners.When fair value is used in the measurement of assets in the financial statements, current GAAP provides the following references as basis of fair value except Price in an active market Price based on the assessed value of governmental bodies Price in a more recent transaction Price taken from industry or sector benchmarks
- What is a “greenfield” investment? Choose the correct. A)Farm land held for speculation. B)Foreign direct investment whereby a new facility is constructed abroad. C)Purchasing an existing facility as a foreign direct investment. D)A foreign investment that has been approved by the Environmental ProtectionAgency.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? * 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 titleIn which of the following areas does the IASB not allow firms to choose between two acceptable treatments?a. Measuring property, plant, and equipment subsequent to acquisition.b. Measuring noncontrolling interest in a business combination.c. Recognizing development costs that meet criteria for capitalization as an asset.d. Classifying interest paid in the statement of cash flows.
- Under IFRS, disclosure for an investment property must include which of the following? Question 11 options: a) For investment properties measured using the fair value model: additions during the period, net gains or losses, and transfers to and from inventories. b) For investment properties measured using the fair value model: whether fair values used were based on valuations by an independent valuator, useful lives of properties, and transfers to and from inventories. c) For investment properties measured using the cost model: the depreciation method used, the useful lives of the properties, depreciation, and net gains or losses from fair value adjustments. d) For investment properties measured using the fair value model: amounts recognized in profit or loss for rental income and direct operating expenses, useful lives of investment properties.When fair value is used in measuring assets in the financial statements, current GAAP provides following references as basis of fair value, except Price in active market Price in recent transaction Price taken from industry or sector benchmarks Price based on assessed value of government bodiesPlease focus on Goodwill when you answer the question below and when you apply an example to it. The question: Explain and analyze the effect of major differences between IFRS and U.S. GAAP on Financial statements in terms of Definition, recognition, Measurement, and alternative methods of measrument (if allowed), the requirements, the presentation of the items in financial statements, and disclosure in the notes of the financial statements.
