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. goodwill  C. plant, property and equipment  D. accelerated depreciation

One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant & equipment subsequent to initial recognition.  Read IAS 16 and answer the following questions.  Provide a list of the references you have used to search this topic. What additional disclosures should be made if property, plant & equipment are stated at revalued amounts?     Explain the effect on the company’s financial statements if a company switches from the historical cost principle to the revaluation model?  How should this change be accounted for in the financial statements?

Under IFRS, when a company chooses the revaluation model as its accounting policy for measuring property, plant, and equipment, which of the following statements is correct? a. When an asset is revalued, the entire class of property, plant, and equipment to which the asset belongs must be revalued. b. When an asset is revalued, individual assets within a class of property, plant, and equipment to which that asset belongs can be revalued. c. Revaluations of property, plant, and equipment must be made every three years. d. An increase in an asset’s book value as a result of the first revaluation must be recognized as a component of profit and loss.

Under IFRS, when an entity chooses the revaluation model as its accounting policy for measuring property, plant, and equipment, which of the following statements is correct?a. When an asset is revalued, the entire class of property, plant, and equipment (such as Land) to which that asset belongs must be revalued.b. When an asset is revalued, it is reported on the balance sheet at its current replacement cost.c. Revaluations of property, plant, and equipment must be made at least every three years.d. The revalued assets must be reported in a special section of the balance sheet separate from those assets measured using the cost model.

Which of the following is most accurate in describing the measurement of assets and liabilities? a. Fair value should be used as often as possible. b. Assets are marked at historic cost, especially for U.S. GAAP, and liabilities are recorded at present value. c. A number of different methods are allowed for calculating asset and liability values.

The main difference between U.S. accounting standards and international accounting standards when accounting for plant, property and equipment is a. international accounting standards require the use of current fair value with changes recognized in equity only. b. U.S. accounting standards do not allow the write-down of assets due to impairment. c. international accounting standards allow plant, property and equipment to be stated at current fair value with changes recognized in income or equity. d. U.S. accounting standards allow plant, property and equipment to be stated at current fair value with changes recognized in income or equity.

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.

Based on the knowledge that you have learned from this unit and the relevant accounting standards, answer the following questions. Your answers must demonstrate your own understandings and applications of relevant accounting standards, but not a direct quote of the standards. a.Use an example to explain what are included in the original cost of property, plant, and equipment when they are initially acquired.   b. What is the basic principle for valuing property, plant, and equipment acquired in exchange for other non-monetary assets? c. Use an example to illustrate how gain or loss on disposal is calculated and recorded when an item of property, plant, and equipment is disposed of.

Which statements are correct concerning measurement of cost of property, plant and equipment?I. The purchase price of an item of property, plant and equipment is the cash price equivalent at the date of recognitionII. If payment is deferred beyond normal credit terms, the difference between the cash price equivalent and total payment is recognized as interest expense over the life of the asset.III. If an item of property, plant and equipment is acquired in exchange for a nonmonetary asset or a combination of monetary and nonmonetary asset, the cost of such item is measured at fair value unless the exchange transaction lacks commercial substance or fair value of either asset received or given up is not reliably determinable.IV. If an entity is able to determine reliably the fair value of both the asset given up and asset received in an exchange, the fair value of the asset given up is used to measure the cost of asset received in exchange.