Question 1

Which of the following are reasons to report segmented accounting information for multinational enterprises?

Accepted Answer

A) There are different risks in different parts of the world that a reader may need to know about. 
B) Different lines of business have different levels of risk that may affect business success. 
C) Growth opportunities differ from one nation to another that could affect share value. 
D) All of the above are reasons for segmented reporting. 
A) There are different risks in different parts of the world that a reader may need to know about. 
B) Different lines of business have different levels of risk that may affect business success. 
C) Growth opportunities differ from one nation to another that could affect share value. 
D) All of the above are reasons for segmented reporting.

Question 2

According to both IFRS 8 and U.S.GAAP,which of the following information should be disclosed for each separate reportable operating segment?

Accepted Answer

A) the factors used to identify operating segments 
B) total liabilities for each operating segment 
C) total compensation expense for each operating segment 
D) total rent expense for each operating segment 
A) the factors used to identify operating segments 
B) total liabilities for each operating segment 
C) total compensation expense for each operating segment 
D) total rent expense for each operating segment

Question 3

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

Accepted Answer

A) a parent corporation and all of its subsidiary corporations 
B) any multinational corporation under the jurisdiction of the IASB 
C) all countries that have adopted IASB standards 
D) a company that is comprised of foreign corporations dissolved into one entity 
A) a parent corporation and all of its subsidiary corporations 
B) any multinational corporation under the jurisdiction of the IASB 
C) all countries that have adopted IASB standards 
D) a company that is comprised of foreign corporations dissolved into one entity

Question 4

Under IAS 27,how is "control" defined?

Accepted Answer

A) ownership of 50% of more of the voting shares of another entity 
B) representation on another entity's board of directors 
C) the power to govern financial and operating policies of an entity 
D) ownership of 30% or more of the voting shares of another entity 
A) ownership of 50% of more of the voting shares of another entity 
B) representation on another entity's board of directors 
C) the power to govern financial and operating policies of an entity 
D) ownership of 30% or more of the voting shares of another entity

Question 5

Prior to 2007,which method of accounting for inflation most closely represented the supplemental reporting required in Mexico?

Accepted Answer

A) Current replacement cost 
B) Current cost 
C) General purchasing power 
D) Historical cost 
A) Current replacement cost 
B) Current cost 
C) General purchasing power 
D) Historical cost

Question 6

IFRS 8 adopts which approach to report segmented financial information?

Accepted Answer

A) geographic approach 
B) business lines approach 
C) management approach 
D) asset test approach 
A) geographic approach 
B) business lines approach 
C) management approach 
D) asset test approach

Question 7

In addition to requiring separate reporting for operating segments,U.S.GAAP requires companies to report:

Accepted Answer

A) operating income for each country in which a material amount of revenue is derived. 
B) revenues from external customers and long-lived assets for all foreign countries where it has assets or derives revenue. 
C) revenues and long-lived assets for each country that constitutes 10% of more of the combined revenues or assets. 
D) operating income adjusted for inflation for each country where it has significant operations. 
A) operating income for each country in which a material amount of revenue is derived. 
B) revenues from external customers and long-lived assets for all foreign countries where it has assets or derives revenue. 
C) revenues and long-lived assets for each country that constitutes 10% of more of the combined revenues or assets. 
D) operating income adjusted for inflation for each country where it has significant operations.

Question 8

According to IAS 27,how can effective control be achieved without owning more than 50% of another company's voting shares?

Accepted Answer

A) representation on the company's board of directors 
B) being the primary entity exercising voting rights 
C) through a contract between the entities 
D) All of the above may result in control by one corporation over another. 
A) representation on the company's board of directors 
B) being the primary entity exercising voting rights 
C) through a contract between the entities 
D) All of the above may result in control by one corporation over another.

Question 9

A representative market basket of products cost $250 at the beginning of the year,and the same collection of products costs $280 at the end of the year. What is the annual rate of inflation?

Accepted Answer

A) 10.7% 
B) 12% 
C) 112% 
D) -10.7% 
A) 10.7% 
B) 12% 
C) 112% 
D) -10.7%

Question 10

Why has inflation accounting NOT been required in the United States and the United Kingdom since the 1980s?

Accepted Answer

A) Accounting regulators in the U.S.and U.K.have not addressed the issue of inflation accounting in their pronouncements. 
B) Inflation has not been a significant problem in the U.S.and the U.K.since the 1980's. 
C) Accounting regulators could not agree on a method for adjusting financial statements for the effect of inflation. 
D) Corporations in the U.S and U.K.voluntarily report inflation-adjusted financial statements,making the regulations unnecessary. 
A) Accounting regulators in the U.S.and U.K.have not addressed the issue of inflation accounting in their pronouncements. 
B) Inflation has not been a significant problem in the U.S.and the U.K.since the 1980's. 
C) Accounting regulators could not agree on a method for adjusting financial statements for the effect of inflation. 
D) Corporations in the U.S and U.K.voluntarily report inflation-adjusted financial statements,making the regulations unnecessary.

Question 11

How is Goodwill resulting from business combinations treated under Japanese GAAP?

Accepted Answer

A) It is capitalized and amortized over a period of no more than 40 years. 
B) It may be expensed in the year the subsidiary is acquired. 
C) It is capitalized and written down when its fair value becomes less than its carrying value. 
D) It is amortized over between 5 and 40 years. 
A) It is capitalized and amortized over a period of no more than 40 years. 
B) It may be expensed in the year the subsidiary is acquired. 
C) It is capitalized and written down when its fair value becomes less than its carrying value. 
D) It is amortized over between 5 and 40 years.

Which of the following are reasons to report segmented accounting information for multinational enterprises?

According to both IFRS 8 and U.S.GAAP,which of the following information should be disclosed for each separate reportable operating segment?

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

Under IAS 27,how is "control" defined?

Prior to 2007,which method of accounting for inflation most closely represented the supplemental reporting required in Mexico?

IFRS 8 adopts which approach to report segmented financial information?

In addition to requiring separate reporting for operating segments,U.S.GAAP requires companies to report:

According to IAS 27,how can effective control be achieved without owning more than 50% of another company's voting shares?

A representative market basket of products cost $250 at the beginning of the year,and the same collection of products costs $280 at the end of the year. What is the annual rate of inflation?

Why has inflation accounting NOT been required in the United States and the United Kingdom since the 1980s?

How is Goodwill resulting from business combinations treated under Japanese GAAP?

Introduction to International Accounting

Worldwide Accounting Diversity

International Convergence of Financial Reporting

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Comparative Accounting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Strategic Accounting Issues in Multinational Corporations

Comparative International Auditing and Corporate Governance

International Corporate Social Reporting

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Exam 9: Additional Financial Reporting Issues

Which of the following are reasons to report segmented accounting information for multinational enterprises?

According to both IFRS 8 and U.S.GAAP,which of the following information should be disclosed for each separate reportable operating segment?

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

Under IAS 27,how is "control" defined?

Prior to 2007,which method of accounting for inflation most closely represented the supplemental reporting required in Mexico?

IFRS 8 adopts which approach to report segmented financial information?

In addition to requiring separate reporting for operating segments,U.S.GAAP requires companies to report:

According to IAS 27,how can effective control be achieved without owning more than 50% of another company's voting shares?

A representative market basket of products cost $250 at the beginning of the year,and the same collection of products costs $280 at the end of the year. What is the annual rate of inflation?

Why has inflation accounting NOT been required in the United States and the United Kingdom since the 1980s?

How is Goodwill resulting from business combinations treated under Japanese GAAP?

Introduction to International Accounting

Worldwide Accounting Diversity

International Convergence of Financial Reporting

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Comparative Accounting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Strategic Accounting Issues in Multinational Corporations

Comparative International Auditing and Corporate Governance

International Corporate Social Reporting

Filters