Exam 9: Additional Financial Reporting Issues

Canto Ltd, a Spanish corporation, acquired 100% interest in Bevo, Inc., a U.S.corporation for $50,000,000.The net assets of Bevo had a book value of $35,000,000 and a fair value of $46,000,000.How should Canto record the business combination? A. Net Assets (Bevo) 35,000,000 Goodwill 15,000,000 Cash 50,000,000 B. Net Assets (Bevo) 46,000,000 Goodwill 4,000,000 Cash 50,000,000 C. Net Assets (Bevo) 50,000,000 Cash 50,000,000 D. Net Assets (Bevo) 46,000,000 Goodwill 4,000,000 Cash 50,000,000

Which of the following is potentially a problem associated with historical cost-based financial statements in periods of inflation?

What term is used to refer to presenting the financial statements for a group of enterprises as if it was a single entity?

According to IFRS 3, how should companies account for negative goodwill arising from business combinations?

For a business combination in which the acquirer achieves control without acquiring all the equity of the acquiree, the noncontrolling equity interest is measured:

Which of the following countries requires companies to use current replacement cost accounting to prepare primary financial statements?

How do multinational corporations combine operations?

Holding monetary assets during a period of inflation results in:

Under ARB 51, "controlling financial interest" is:

IFRS 3, issued in 2004, eliminated the use of which concept for reporting assets and liabilities of an acquired company on the parent company's consolidated financial statements?

How are IASB requirements to account for joint ventures different from U.S.GAAP?

For the purpose of financial reporting under IASB standards, what is a "group?"

How does U.S.GAAP differ from IFRS with respect to presenting consolidated financial statements?

Under IFRS 3, which concept must be used to report the assets and liabilities of an acquired company on the parent company financial statements?

Which of the following is NOT a characteristic which is indicative of hyperinflation under IAS 29?

How is negative goodwill accounted for under U.S.GAAP?

Mega Corporation acquired 65% of the voting shares of Forko Ltd for €10 billion and used the purchase method of accounting for the merger.Mega Corporation's interest in Forko Ltd.had a restated value of €950 million.How should the difference be accounted for by Mega Corporation?

Which of the following is a reason to report segmented accounting information for multinational enterprises?

Why inflation accounting is NOT required in the United States and the United Kingdom since late 1980s?

Which of the following entity-wide disclosures is NOT required under both IFRS 8 and U.S.GAAP?