ADVANCED FINANCIAL ACCOUNTING IA
ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 13, Problem 13.2.3E
To determine

Introduction:When a company operates various businesses in various geographical areas or have different segments of one business in similar area, then segment reporting is mandatory as per IAS14. In this, company have to report various segments income, expenses, assets, liabilities,etc.

To choose: The correct option

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1. Which of the following disclosures is required for a change from Average costing to FIFO?   a. The cumulative effect on prior years, net of tax, in the current income statement b. The justification for the change c. Pro forma data on income and earnings per share d. All of these are required.   2. An example of a change in accounting principle that should be handled currently is a change from the   a. completed-contract method to the percentage-of-completion method for long-term contracts. b. Average method to the FIFO method for inventory valuation. c. sum-of-the-years'-digits method to the straight-line method. d."full cost" method to another method in the extractive industry
Choose the correct. Plume Company has a paper products operating segment. Which of the following items does it not have to report for this segment?a. Interest expense.b. Research and development expense.c. Depreciation and amortization expense.d. Interest income.
The income statement of a service-sector firm reports: both period and inventoriable costs a O inventoriable costs only .b O period costs only .R period and inventoriable costs but at different times; the reporting varies dO

Chapter 13 Solutions

ADVANCED FINANCIAL ACCOUNTING IA

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