Concept explainers
IFRS: International Financial Reporting Standards is a set of accounting guidelines formulated by an independent non-profit organization known as International Accounting Standards Board. These guidelines provide the accounting knowledge to the investors and auditors as to how the accounting transactions should be reported in the financial statements.
U.S. GAAP: United States Generally Accepted Accounting Principles provides a framework of accounting rules for financial reporting in order to obtain uniformity. It contains the accounting concepts and principles required for proper presentation of financial statements.
Financial disclosures: Financial disclosures are the reports which provide financial information about the company to its investors for investment decision making.
To State: the method that the company uses to value its inventory and the other alternatives that are available under IFRS and under U.S. GAAP.
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INTERMEDIATE ACCOUNTING RMU 9TH EDITION
- q11 Which of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. Investment q12 Insurance companies and brokerage houses are examples of which of the following. a. Financial instruments b. Financial institutions c. Medium of exchange d. Financial marketsarrow_forwardat least 150 words in which you discuss the differences between GAAP and IFRS. · What are implications of the differences in these two different financial reporting systems? · What are two benefits and two challenges with each? Using your preferred search engine (such as Google), enter one or more of the following keywords: · · IFRS · U.S. GAAP conversion · U.S. GAAP convergence · U.S. GAAP v. IFRSarrow_forward18- 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_forward
- 3 - 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_forward18 - In the form of payment with acceptance credit, which is the journal entry to be made if the policies sent by the exporter are accepted by the importer?A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 121 02 RECEIVABLES-FC XX 601 01 FOREIGN GOODS SALES XX B) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 FOREIGN BUYER XX 601 01 FOREIGN GOODS SALES XX C) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 FOREIGN BUYER XX 121 02 RECEIVABLES-FC XX D) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 121 02 RECEIVABLES-FC XX 120 02 FOREIGN BUYER XXE) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 102 02 BANK X DTH XX 121 02 RECEIVABLES-FC XXarrow_forwardReview the new revenue recognition guidance issued by the Financial Accounting Standards Board http://www.fasb.org/jsp/FASB/Page/ImageBridgePagecid=1176169257359 and answer the following questions. What is the new standard as of ASC 606? What does that mean to you? What are the recommended steps companies should follow to achieve the core principle? How does this change current GAAP standards? Who is required to adhere to this new standard?arrow_forward
- Which of the following way to classify and measure financial instruments do you favor? Justify your answer. IFRS 9: See page 7 of IFRS 9-Project-Summary.pdf. Then click OK. U.S. GAAP including ASU 2016-01: A summary is on page 3 of Chapter 5 Financial Instruments-3.doc The first approach proposed by Messrs. Linsmeier and Siegel on pages 182-183 of FASB-ASU No. 2016-01.arrow_forwardQUESTION 3 Use the following table to answer questions: Country (currency) Canada (dollar) Denmark (krone) Euro (euro) Japan (yen) Norway (krone) Sweden (krona) Switzerland (franc) United Kingdom (pound) United States (dollar) Required: Currency Symbol CS DKr € V NKr Skr SFr £ $ (1) Per $ 1.063 6.081 0.816 88.49 6.503 7.782 1.078 0.668 Exchange Rates on June 30, 2010 (2) Per £ 1.59 9.098 1.221 132.39 9.729 11.643 1.613 1.496 (3) Per € 1.302 7.449 108.39 7.966 9.532 1.321 0.819 1.225 Exchange Rates on June 30, 2009 one year previous (4) Per $ 1.161 5.309 0.713 96.49 6.437 7.748 1.088 0.607 (5) Per £ 1.913 8.743 1.174 158.9 10.6 12.76 1.791 1.647 (6) Per € 1.629 7.447 135.34 9.028 10.868 1.536 0.852 1.403 a) Referring to the table above, calculate the Sweden Krona to U.S. Dollar exchange rate, E$/skr for June 2009 and June 2010. Note: E denotes nominal exchange rate.arrow_forwardQUESTION 1 MITISHAMBA Co., a USA-based company specializing in the supply of medical equipment to both the USA and Europe, finds itself on November 30, 2023, engaging in a recently finalized deal with a Swiss customer. The agreement involves the sale of CHF12.3 million worth of medical equipment, with the customer scheduled to make payment on May 31, 2024. To mitigate the foreign exchange risk associated with this transaction, MITISHAMBA Co.'s Treasury Department aims to employ traded futures or options to the fullest extent possible. Any portion of the transaction value not covered by a futures or options contract will be hedged using the forward market. Exchange rates (quoted as US$/CHF 1) Spot Three months forward Six months forward Current futures (contract size CHF 125,000, futures price quoted as US$ per CHF1) Futures price: December 1.0318 1.0345 1.0369 1.0292-1.0309 1.0327-1.0347 1.0358-1.0380 March June Page 1 of 2 Currency options Contract size CHF 125.000 Exercise price…arrow_forward
- Use the following chart to answer the next two questions. 2/17 2/18 2/19 £.8/S $1.30/£ £9/S V125/S ¥122/S $.007/¥ €1.1/S €/S.85 $.95/€ What is the percentage appreciation/depreciation of the Euro from the US point of view from 2/17 to 2/18? Round intermediate steps and your final answer to four decimals. Express your answer in decimal format (ex. XXXX)arrow_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_forwardThe question relates to either Chapter 9 ( Foreign Currency Translations and Hedging Foreign Exchange Risk ) or Chapter 10 ( Translation of Foreign Currency Financial Statements ) For Advanced Accounting 13th Edition by Joe B. Hoyle, Thomas F, Schaefer, and Timothy S. Doupnik. Details are included in the image Need all calculations, journal entries, work, etc.arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College