Exam 15: International Financial Reporting Standards

Which inventory cost flow assumption is allowed under U.S.GAAP but not under IFRS? Explain why some U.S.companies will lobby strongly to keep this method as an allowable alternative.

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Question 1

Correct Answer:

Verified

LIFO is allowed under U.S.GAAP,but not under IFRS.U.S.companies currently using LIFO will lobby to keep this method because a switch from LIFO would greatly increase taxes for many U.S.companies.

The Norwalk Agreement formalizes the commitment between the FASB and IASB to the convergence of U.S.GAAP and IFRS.

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(True/False)

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Question 2

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True

What is the main objective of the International Accounting Standards Board (the IASB)?

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Question 3

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The IASB's main objective is to develop a single set of high-quality,understandable,and enforceable global accounting standards to help participants in the world's capital markets and other users make economic decisions.

Which of the following is not a reason why accounting differs across countries?

(Multiple Choice)

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Question 4

For countries whose tax standards are closely tied to financial reporting standards (Continental Europe and Japan),accounting earnings tend to be lower so companies can minimize tax payments.

(True/False)

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Question 5

IFRS allows,but does not require,revaluation of property,plant and equipment to fair value.

(True/False)

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Question 6

Countries that have similar rules for financial accounting and tax accounting,rely more on debt financing,and have historical political and economic ties with Germany are referred to as what types of countries?

(Multiple Choice)

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Question 7

Suppose a company pays interest of $10,000 for the year on borrowed amounts due in two years.Under IFRS,what is the most the company can report this year as cash outflows from financing activities related to this item?

(Multiple Choice)

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Question 8

The body primarily responsible for establishing a single set of global accounting standards is the:

(Multiple Choice)

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Question 9

Suppose a company has research costs of $100,000 and development costs of $200,000 for the year.Under U.S.GAAP,what amount would be reported as an expense in the current year's income statement?

(Multiple Choice)

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Question 10

Which inventory cost flow assumption is allowed under U.S.GAAP but not under IFRS?

(Multiple Choice)

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Question 11

Which of the following statements is true regarding revaluation of property,plant,and equipment to fair value?

(Multiple Choice)

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Question 12

What does it mean to revalue a long-term asset? How do U.S.GAAP and IFRS differ regarding revaluation of long-term assets?

(Essay)

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Question 13

Suppose a severe storm floods a company's headquarters,causing damages to the building of $300,000 and destruction of inventory of $200,000.Because of the unusual nature of this event,the company had no flood insurance to cover these losses.Under U.S.GAAP,how much would the company report as an extraordinary loss in the current year's income statement?

(Multiple Choice)

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Question 14

Assuming rising costs,the switch from LIFO to FIFO or average cost would most likely have what effect(s)?

(Multiple Choice)

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Question 15

In common law countries (such as the U.S. ,the U.K. ,and Canada),greater emphasis is placed on public information than in code law countries (such as France and Germany).

(True/False)

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Question 16

Below are seven reasons for differences in accounting practices among countries.For each reason,at least two options are provided.For each reason,select the option that best describes the United States.

(Short Answer)

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Question 17

Which of the following characteristics of a country most likely affects the extent of companies' financial disclosure practices?

(Multiple Choice)

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Question 18

The primary objective of the IASB is to develop accounting standards in the U.S.

(True/False)

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Question 19

More economically developed economies (the U.S.and the U.K. )have a need for more complex accounting standards.

(True/False)

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Question 20

Showing 1 - 20 of 44

Which inventory cost flow assumption is allowed under U.S.GAAP but not under IFRS? Explain why some U.S.companies will lobby strongly to keep this method as an allowable alternative.

The Norwalk Agreement formalizes the commitment between the FASB and IASB to the convergence of U.S.GAAP and IFRS.

What is the main objective of the International Accounting Standards Board (the IASB)?

Which of the following is not a reason why accounting differs across countries?

For countries whose tax standards are closely tied to financial reporting standards (Continental Europe and Japan),accounting earnings tend to be lower so companies can minimize tax payments.

IFRS allows,but does not require,revaluation of property,plant and equipment to fair value.

Countries that have similar rules for financial accounting and tax accounting,rely more on debt financing,and have historical political and economic ties with Germany are referred to as what types of countries?

Suppose a company pays interest of $10,000 for the year on borrowed amounts due in two years.Under IFRS,what is the most the company can report this year as cash outflows from financing activities related to this item?

The body primarily responsible for establishing a single set of global accounting standards is the:

Suppose a company has research costs of $100,000 and development costs of $200,000 for the year.Under U.S.GAAP,what amount would be reported as an expense in the current year's income statement?

Which inventory cost flow assumption is allowed under U.S.GAAP but not under IFRS?

Which of the following statements is true regarding revaluation of property,plant,and equipment to fair value?

What does it mean to revalue a long-term asset? How do U.S.GAAP and IFRS differ regarding revaluation of long-term assets?

Assuming rising costs,the switch from LIFO to FIFO or average cost would most likely have what effect(s)?

In common law countries (such as the U.S. ,the U.K. ,and Canada),greater emphasis is placed on public information than in code law countries (such as France and Germany).

Below are seven reasons for differences in accounting practices among countries.For each reason,at least two options are provided.For each reason,select the option that best describes the United States.

Which of the following characteristics of a country most likely affects the extent of companies' financial disclosure practices?

The primary objective of the IASB is to develop accounting standards in the U.S.

More economically developed economies (the U.S.and the U.K. )have a need for more complex accounting standards.

A Framework for Financial Accounting

The Accounting Cycle: During the Period

The Accounting Cycle: End of the Period

Cash and Internal Controls

Receivables and Sales

Inventory and Cost of Goods Sold

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Time Value of Money

Investments

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