Exam 14: Exploring Accounting Standards and Differences around the World

The International Accounting Standards Committee was established in 1973 to develop worldwide standards.Which group replaced it in 2001?

No single explanation can be given for the divergence of accounting standards.

The group with primary responsibility for development of a single set of accounting standards around the world is the

Which of the following is a true statement about the terms used on the balance sheet?

Under IFRS, if inventory is written down to a new lower market value, this cannot be reversed in later periods.

Both U.S.GAAP and IFRS classify gains and losses that are both unusual in nature and infrequent in occurrence as extraordinary and present them in a separate section of the income statement.

When comparing U.S.GAAP and IFRS, regarding the level of details in the standards and the level of disclosure required, which of the following is correct? ​ U.S. GAAP IFRS a. Detail: More Detail: Less Disclosure: More Disclosure: Less b. Detail: More Detail: Less Disclosure: Less Disclosure: More c. Detail: Less Detail: More Disclosure: Less Disclosure: More d. Detail: Less Detail: More Disclosure: More Disclosure: Less

The cost of Fulton's inventory at the end of the year was $145,000.Due to obsolescence, the cost to replace the inventory was only $90,000.Net realizable value-what the inventory could be sold for-is $102,000. ​ Required: Determine the amount Fulton should report on its year-end balance sheet for inventory assuming the company follows (a) U.S.GAAP and (b) IFRS.

U.S.GAAP requires companies to present a balance sheet with classifications for current and long-term liabilities, while IFRS does not.

The U.S.accounting standards are more principle-based than IFRS.

In countries, like Japan and much of Europe, fewer differences between the amount of income reported to stockholders and that reported to the taxing authorities exist than in the U.S.

Ultimately, it will be the responsibility of the FASB in the U.S.to decide if the advantages of IFRS's outweigh the disadvantages.

There is a standard format in various countries for the statement of financial position.

Which of the following statements is true regarding extraordinary items on the income statement?

When analyzing foreign statements, all of the following are accurate positions of non-current liabilities listings except:

Explain the two primary legal systems used around the world and what these differences have to do with accounting standards.

What is the name for the balance sheet under international accounting standards?

Discuss at least four reasons that accounting standards currently differ between countries.

Which of the following inventory costing methods is prohibited under IFRS?

How does the application of the lower-of-cost-or-market rule differ between U.S.GAAP and IFRS?