Exam 24: Presentation and Disclosure in Financial Reporting

Farr, Inc.is a multidivisional corporation which has both intersegment sales and sales to unaffiliated customers.Farr should report segment financial information for each division meeting which of the following criteria?

If 10 percent or more of company revenue is derived from a single customer, the company must disclose the total amount of revenue from each such customer by segment.

While there are no formal IFRS requirement for management commentary, the IASB has initiated a project that offers a non-binding framework and limited guidance on its application, which could be adapted to the legal and economic circumstances of individual jurisdictions.

The rate of return for 2011 based on the year-end ordinary share equity was

A financial forecast presents to the best of the responsible party's knowledge and belief,

Use the following information for questions. The following data are provided: Additional information: Depreciation included in cost of goods sold and operating expenses is $305,000.On May 1, 2011, 15,000 ordinary shares were issued.The preference share are cumulative.The preference dividends were not declared during 2011. -The book value per ordinary share at 12\31\11 is

Perez Company's net accounts receivable were $600,000 at December 31, 2010 and $660,000 at December 31, 2011.Net cash sales for 2011 were $390,000.The receivables turnover for 2011 was 7.0.What were Perez's total net sales for 2011?

According to IAS 1, which of the following are not commonly required disclosures of accounting policies?

IASB rules directly affect financial statements, notes to the financial statements, and supplementary information.

Which of the following facts concerning plant assets should be included in the summary of significant accounting policies?

In order to make adequate disclosure of related party transactions, companies should report the legal form, rather than the economic substance, of these transactions.

The operating approach reflects how management segments the company for making operating decisions.

At December 31, 2011, the book value per ordinary share of was

All of the following statement are true regarding the IASB and disclosure of dividend policies except;

Fina Corp.had the following transaction during the quarter ended March 31, 2011: Payment of fire insurance premium for calendar year 2011 600,000 What amount should be included in Fina's income statement for the quarter ended March 31, 2011?

A company's first IFRS financial statements must include at least how many statements of financial position?

In January 2011, Post, Inc.estimated that its year-end bonus to executives would be $720,000 for 2011.The actual amount paid for the year-end bonus for 2010 was $660,000.The estimate for 2011 is subject to year-end adjustment.What amount, if any, of expense should be reflected in Post's quarterly income statement for the three months ended March 31, 2011?

The rate of return on share capital-equity is calculated by dividing

Accounting policies are the specific accounting principles and methods a company uses and considers most appropriate to present fairly its financial statements.

All of the following are ways in which in simplified IFRS for is less complex than full IFRS except which statement?