Exam 22: Accounting in a Global Market

Which of the following is NOT a short-term convergence topic that the FASB must address in order to eliminate the reconciliation of accounts prepared under different sets of standards of different countries?

Which of the following is correct regarding international accounting standards for the impairment of intangible assets?

Finnish Company converts its foreign subsidiary financial statements using the translation process.The company's subsidiary in Denmark reported the following for 2014: revenues and expenses of 95,000 and 63,000 kroner,respectively,earned or incurred evenly throughout the year,dividends of 43,000 kroner were paid during the year.The following exchange rates are available: Translated net income for 2014 is

Under international accounting standards,deferred tax assets and liabilities are classified as

Under international accounting standards,which of the following methods of inventory costing is not acceptable?

Under international accounting standards,cash received from interest (associated with interest revenue)can be shown on the statement of cash flows as an

The following financial information is for Milo Company,a non-U.S.firm with shares listed on a U.S.stock exchange: If Milo Company were following U.S.GAAP,the minority interest would have been classified as a liability instead of as part of stockholders' equity.In addition,minority interest income of $4,000 for the year would have been excluded from the computation of net income.Under U.S.GAAP the investment securities would have been classified as trading securities and the interest on financing of self-constructed assets would have been capitalized rather than expensed. Prepare reconciliations of Milo's reported stockholders' equity and net income to U.S.GAAP.

Which of the following statements most accurately reflects the approach the FASB and IASB have identified for reaching convergence of U.S.and international accounting standards?

Which of the following is true regarding the accounting for research and development costs under international accounting standards?

The following financial information is for Pasha Company,a non-U.S.firm with shares listed on a U.S.stock exchange: If Pasha Company were following U.S.GAAP,the minority interest would have been classified as a liability instead of as part of stockholders' equity.In addition,minority interest income of $5,000 for the year would have been excluded from the computation of net income.Under U.S.GAAP the investment securities would have been classified as trading securities and the interest on financing of self-constructed assets would have been capitalized rather than expensed. Prepare reconciliations of Pasha's reported stockholders' equity and net income to U.S.GAAP.

Under international accounting standards,revenue is recognized

Under international accounting standards regarding depreciation,an entity

Which of the following statements is correct?

Which of the following is the primary factor in determining the functional currency of a foreign subsidiary?

Hosgood Distributing Inc.converts its foreign subsidiary financial statements using the translation process.Their German subsidiary reported the following for 2014: revenues and expenses of 9,050,000 and 6,400,000 marks,respectively,earned or incurred evenly throughout the year,dividends of 2,000,000 marks were paid during the year.The following exchange rates are available: Translated net income for 2014 is

DeGaulle Enterprises,a subsidiary of Clinton Company based in New York,reported the following information at the end of its first year of operations (all in French francs): assets--4,790,000;expenses--6,500,000;liabilities--2,950,000;capital stock--1,200,000,revenues--7,140,000.Relevant exchange rates are as follows: As a result of the translation process,what amount is recorded on the financial statements as the translation adjustment?

Which of the following is true regarding the application of lower-of-cost-or-market method under international accounting standards?