Question

16- US GAAP and the IFRS differ on their definition of financial assets in that only the IFRS defines it as: a) An equity instrument (of anther entity) b) A contractual right to receive cash c)There is no difference in the definition between US GAAP and the IFRS 17- Under IFRS, a lease is not an operating lease and is classified as capital lease when: a) 50% or more of its economic life transfers to the lessee b) Risks and rewards of ownership remain with leaser and transferred to lessee c)Under the IFRS, there is no distinction between operating and capital lease. 18- Under the IFRS, consistency: a) Excludes the use of the fair value option b) Requires an entity to use the same accounting policies at interim and year-end c) Requires convergence to US GAAP when in doubt of principle 19- Under the IFRS, revenue is recognized in all below situations except one when: a) Economic benefits are likely b) Economic benefits are reliable measured c) Costs are reliable measures 20- Unlike the US GAAP balance sheet, the IFRS: a)Presents equity before assets b) Is two columns c) Does not present goodwill

Answer 1

16. Option a. An equity instrument (of anther entity)

17. Option b. Risks and rewards of ownership remain with leaser and transferred to lessee.

18. Option b. Requires an entity to use the same accounting policies at interim and year-end.

19. Option b. Economic benefits are reliable measured.

20. Option b. Is two columns.