Financial Accounting - Access
4th Edition
ISBN: 9781259958533
Author: SPICELAND
Publisher: MCG
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Chapter E, Problem 14RQ
To determine
To Explain: The meaning of revaluation of long term assets and the difference between the GAAP and IFRS in the revaluation of long term assets.
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Students have asked these similar questions
Explain the ‘qualifying asset’ and how do we treat exchange rate differences relating to the acquisition of qualifying assets? Compare and contrast this with the treatment for assets that are not qualifying assets?Give your answer as per AASB 123
What basic principle do U.S. GAAP and IFRS rely upon in recording the initial acquisition value for nearly all assets?
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.
Chapter E Solutions
Financial Accounting - Access
Ch. E - Prob. 1RQCh. E - Describe at least five reasons why accounting...Ch. E - Which factor explaining why accounting practices...Ch. E - Prob. 4RQCh. E - Prob. 5RQCh. E - Prob. 6RQCh. E - Prob. 7RQCh. E - Prob. 8RQCh. E - Prob. 9RQCh. E - What is meant by a conceptual framework in...
Ch. E - Prob. 11RQCh. E - Which inventory cost flow assumption is allowed...Ch. E - Prob. 13RQCh. E - Prob. 14RQCh. E - Prob. 15RQCh. E - Prob. 16RQCh. E - How is preferred stock reported differently under...Ch. E - Prob. E.1ECh. E - Prob. E.2ECh. E - Prob. E.3ECh. E - Prob. E.4ECh. E - Prob. E.5ECh. E - Prob. E.6ECh. E - Prob. E.7ECh. E - Prob. E.8E
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- Under U.S. GAAP, in a year in which the fair value of an asset rises, should a company record depreciation expense for that asset? Why?arrow_forwardDescribe how IFRS and U.S. GAAP treat increases in the value of plant assets subsequent to their acquisition (but before their disposition).arrow_forwardIn your own words, briefly explain a 'qualifying asset' and how we report exchange rate differences relating to the acquisition of qualifying assets? Contrast this with the treatment for assets that are not qualifying assetsarrow_forward
- When an intangible asset has a finite life, amortization should be taken over what period of time? The shorter of the asset’s useful life or its legal life. The longer of the asset’s useful life or its legal life. According to U.S. GAAP, all costs should be expensed. No amortization should be taken on intangible assets.arrow_forwardWhat is the difference between tangible and intangible assets? What is difference between fair value and market value? What is Goodwill? Why is it difficult to determine its true value?arrow_forwardWhat is an intangible asset? Should all intangible assets be subject to amortization? Explain why or why not. Why are some intangible assets not amortized? What is the implication to the financial statements?arrow_forward
- Just briefly describe how impairment losses for goodwill are calculated under U.S. GAAP and IFRS, respectively.arrow_forwardWhat is the difference between amortization and depreciation, and how are they applied to intangible assets?arrow_forwardWhich of the following is a CORRECT statement about long-term asset impairment? A. Under U.S. GAAP, an asset that has been written down because of impairment can be written back up if it increases in value in the future. B. An asset is impaired if the net book value is less than the expected future cash flows. C. If an asset is impaired, the expected future cash flows will exceed the fair value of the asset. D. If an asset is impaired, the impairment loss is the difference between the net book value and the fair value.arrow_forward
- Which of the following is not a part of Other Comprehensive Income? Group of answer choices foreign currency translation adjustments gains on the sale of equipment unrealized gains on available-for-sale debt securities unrecognized pension costsarrow_forwardcompare and contrast the recording of fixed assets under US GAAP and IFRS How would you determine the impairment of fixed assets? Provide an appropriate numerical example to support your responsearrow_forwardWhat are the criteria for capitalization of fixed assets? What items are included in the cost of a fixed asset? Should interest be included in the cost of a fixed asset? Why or why not?arrow_forward
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