Concept explainers
Real World Case 13–19
Contingencies
• LO13–5
Real World Financials
IFRS
Reporting requirements for
Required:
For each of the following, access the online version of the indicated financial report and answer the question. Also compare reporting under IFRS to similar reporting under U.S. GAAP.
1. AU Optronics (Form 20-F, filed 3/21/2016): Where there is a continuous range of possible outcomes, with each point in the range as likely as any other, what amount is accrued as the estimate of the obligation?
2. B Communications LTD (Form 20-F, filed 4/19/2016): With respect to legal claims, at what probability level would B Communications accrue a liability for a possible litigation loss?
Want to see the full answer?
Check out a sample textbook solutionChapter 13 Solutions
Gen Combo Looseleaf Intermediate Accounting; Connect Access Card
- 18- text _____________ is one of the financial market instruments which grants a short-term loan that is usually sanctioned by the banks for importers and exporters to finance specific transactions. a. Share Acceptance b. Bond Acceptance c. Repurchase Acceptance d. Bankers’ Acceptancearrow_forwardIntermediate Accounting 105 May I please have a GAAP explanation, along with examples providing concepts? Under what conditions should a short-term obligation be excluded from current liabilities? Thank you so mucharrow_forward3 - CODE AND NAME OF THE ACCOUNT WILL BE DEBT 121 02 Foreign Currency Receivables XXX120 02 Foreign Buyer XXXWhich transaction belongs to the journal entry made above?A) Submission of the policy for collection B) Refund record of the policyC) Acceptance record of the policyD) Guarantee record of the policyE) Registration of collection from foreign buyerarrow_forward
- Question 9 of 18 Trade receivables are preferably presented on the face of the statement of financial position Select the correct response: as a separate line item distinguished from other receivables as part of current assets, included and undistinguished from other assets as part of one line item, included and undistinguished from other receivables as part of one line item but distinguished from other receivables ( Previousarrow_forwardContingent liabilities Altria Group, Inc., has more than 12 pages dedicated to describing contingent liabilities in the notes to recent financial statements. These pages include extensive descriptions of multiple contingent liabilities. Use the Internet to research Altria Group, Inc., at www.altria.com. a. What are the major business units of Altria Group? b. Based on your understanding of this company, why would Altria Group require more than 12 pages of contingency disclosure?arrow_forwardQ12 Which of the following is correct in a regular way purchase (or sale) of a financial asset? Select one or more: a. The trade date should always coincide with the settlement date. b. Settlement should be effected within seven workings days always c. Purchasing and selling of securities should be done according to the terms and conditions stipulated by the traders. d. The asset should be delivered within the time frame established generally by regulation or convention in the marketplace concerned.arrow_forward
- Rece vable Question 2 of 18 For trade receivables, the fair value is deemed equal to the Select the correct response: O the amount due from the buyer without adjustment for any trade discounts allowed the price in a binding sale agreement exchange price between a seller and a buyer after taking into account the amount of any trade discounts and volume rebates allowed by the entity. the quoted price of the receivable in an active market < Previousarrow_forwardQ 22 Which of the following is a debt security whose payments originate from other loans, such as credit card debt, auto loans, and home equity loans? Multiple Choice junk bonds credit quality securities asset-backed securities debenturesarrow_forwardWhich of the following way to classify and measure financial instruments do you favor? Justify your answer. 1- IFRS 9 2- U.S. GAAP including ASU 2016-01 3- The first approach proposed by Messrs. Linsmeier and Siegelarrow_forward
- The estimated amount payable to liabilities without priority is A. 7,059 B.5,709 C. 9 750 D. 9,570arrow_forwardItem 32 of 50 Which one of the following is a spontaneous source of financing? Select the correct response: Prepaid interest Notes Payable Trade credit Long-tern Debtarrow_forwardKf3 What type of assets is closest to REITs? Government bonds Credit Default Swaps Corporate bonds Convertible bondsarrow_forward
- Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage LearningFinancial & Managerial AccountingAccountingISBN:9781285866307Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningAccounting (Text Only)AccountingISBN:9781285743615Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,