Exam 17: Synthesis and Extensions

The concept of _____ includes both the power, or capacity, to direct the strategic, operating, investing, and financing activities of another entity, and the ability to benefit from increases in the value of the other entity and to incur losses from decreases in value.

Which of the following is/are not true?

Which of the following is/are true about accounting for errors and changes in accounting principles and changes in accounting estimates?

Describe what is meant by a reporting entity.

Firms cannot apply the fair value option to derivatives.

A firm that can exert significant influence over another entity accounts for its intercorporate investment by

IFRS permits firms to remeasure property, plant, and equipment upward for increases in fair value under certain conditions.

Which of the following is/are not true?

Describe the relationship between financial reporting standards and the financial reporting objectives, qualitative characteristics of accounting information, and elements of financial statements that comprise the FASB's and the IASB's conceptual frameworks.

U.S.GAAP and IFRS require firms to recognize as an expense the cost of retirement benefits when the employees receive payments or other benefits during retirement not while employees work.

U.S.GAAP and IFRS provide criteria for distinguishing operating leases from capital leases.Which of the following is/are not true?

Shareholders' equity reflects changes in the residual interest of owners from transactions involving capital stock and from earnings activities independent of when cash flows in or out of a firm.

The FASB's conceptual framework defines a(n) _____ as a probable future sacrifice of economic resources arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.

Which of the following is/are true?

Which of the following is/are not true?

Firms do not recognize certain obligations that are uncertain as to amount or timing or both as liabilities, unless those items meet a probability threshold and have a reliable measurement attribute.IFRS refers to these as _____, such as the possible obligation under an unsettled lawsuit.

Firms account for leases using either the operating lease method or the capital (finance) lease method.Which of the following is not true?

The FASB's conceptual framework for financial reporting objectives identify _____as the principal users of financial reports.

Both U.S.GAAP and IFRS often refer to ownership of a(n) _____ of the voting stock of another entity as indicating control, unless evidence indicates that the owner cannot exercise control.

Which of the following is not true?