Homework Answers
Answer
The GAAP requires accounts to be listed in a specific order based on liquidity. In this case cash would be reported first as a current asset while shareholder equity, a non-current assets would be reported last.On the other hand, IRFS does not required accounts listed on a statement or financial position to be in a specific order. Therefore most companies report in reverse order of liquidity. The bottom line is to provide a clear understanding of companies’ assets to those who use financial statements.
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IFRS 2-1 (Essay) in what ways does the format of a statement of financial of position...
16- US GAAP and the IFRS differ on their definition of financial assets in that only...
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...
1. How does a classified balance sheet prepared under GAAP differ from a classified balance sheet...
1. How does a classified balance sheet prepared under GAAP differ from a classified balance sheet prepared under IFRS? 2. What guidance do you find on capitalization of interest in IFRS? How is it different or similar to US GAAP?
Under IFRS, in the shareholders' equity section of the statement of financial position, Select one: a....
Under IFRS, in the shareholders' equity section of the statement of financial position, Select one: a. accumulated other comprehensive income is not presented b. retained earnings and accumulated other comprehensive income are reported separately C. retained earnings is not presented d. accumulated other comprehensive income is reported as a sub-category of retained earnings
Question 8 Flint Corporation has historically followed ASPE, but is considering a change to IFRS. It...
Question 8 Flint Corporation has historically followed ASPE, but is considering a change to IFRS. It has temporary differences at December 31, 2020, that result in the following SFP future income tax accounts: Deferred tax liability, current Deferred tax asset, current Deferred tax liability, non-current Deferred tax asset, non-current $30,600 $50,500 $91,000 $23,700 (a) Indicate how these balances will be presented in Flint's December 31, 2020 SFP, assuming that Flint reports under the ASPE future income taxes method. Flint Corporation...
The IFRS has implemented IAS 1 - Presentation of financial statements, and IAS 7 - Statement...
The IFRS has implemented IAS 1 - Presentation of financial statements, and IAS 7 - Statement of cash flows to outline the requirements for the presentation of general purpose financial statements. The standards also provide guidelines for the structure and minimum requirements for their content. These financial statements are intended to serve users who are not in a position to require financial statements tailored to their particular information needs. Required: Discuss the importance of the above statement as a part...
The primary purpose of the statement of financial position of a business is to reflect A....
The primary purpose of the statement of financial position of a business is to reflect A. The fair value of the entity’s assets at some moment in time. B. The status of the entity’s assets in case of forced liquidation. C. The entity’s potential for growth in stock values in the stock market. D. Items of value, debts, and net worth. (correct answer) A. Assets are reported in the balance sheet using various measurement attributes, including but not limited to...
IFRS 1-2 (Essay) What is the benefit of a single set of high-quality accounting standards? LINK...
IFRS 1-2 (Essay) What is the benefit of a single set of high-quality accounting standards? LINK TO TEXT ere to search 46 2 3 4 Problem 1-1A (Essay) Presented below are five independent situations. (a) Three physics professors at MIT have formed a business to improve the speed of information transfer over the Internet for stock exchange transactions, Each has contrit an equal amount of cash and knowledge to the venture. Although their approach looks promising, they are concermed about...
Which of these statements, applying US GAAP wherever applicable is false? A statement of financial position...
Which of these statements, applying US GAAP wherever applicable is false? A statement of financial position represents the fundamental accounting equation. There are 5 steps to determine revenue recognition in a standard that became effective for public companies in 2018 A balance sheet asset amount can be based on the future value of a current amount. All the accounts included in the calculation of net income are nominal accounts.
International Financial Reporting Standards (IFRS) does not use historical cost. As we discussed in Chapter 6,...
International Financial Reporting Standards (IFRS) does not use historical cost. As we discussed in Chapter 6, historical cost is the original monetary value of an item. For an example, if land was originally purchased one hundred years ago for $50,000, then that land would still be on the books for $50,000. Most importantly this cost is concrete and documented. Instead, IFRS revalues items at their current market value and the capital assets are marked up or down. What is the...
inment CALCULATOR FI Exercise 2-8 These financial statement items are for Nash's Trading Post, LLC at...
inment CALCULATOR FI Exercise 2-8 These financial statement items are for Nash's Trading Post, LLC at year-end, July 31, 2017. Salaries and wages payable $ 3,080 Salaries and wages expense 58,500 Supplies expense 16,600 Equipment 19,500 Accounts payable 4,100 Service revenue 67,100 Rent revenue 9,500 Notes payable (due in 2020) 2,800 Common stock 16,000 Cash 30,200 Accounts receivable 10,780 Accumulated depreciation-equipment 7,000 Dividends 4,000 Depreciation expense 5,000 Retained earnings (beginning of the year) 35,000 Prepare an income statement for the...
Under IFRS, in the shareholders' equity section of the statement of financial position, Select one: a. accumulated other comprehensive income is not presented b. retained earnings and accumulated other comprehensive income are reported separately C. retained earnings is not presented d. accumulated other comprehensive income is reported as a sub-category of retained earnings
Question 8 Flint Corporation has historically followed ASPE, but is considering a change to IFRS. It has temporary differences at December 31, 2020, that result in the following SFP future income tax accounts: Deferred tax liability, current Deferred tax asset, current Deferred tax liability, non-current Deferred tax asset, non-current $30,600 $50,500 $91,000 $23,700 (a) Indicate how these balances will be presented in Flint's December 31, 2020 SFP, assuming that Flint reports under the ASPE future income taxes method. Flint Corporation...
IFRS 1-2 (Essay) What is the benefit of a single set of high-quality accounting standards? LINK TO TEXT ere to search 46 2 3 4 Problem 1-1A (Essay) Presented below are five independent situations. (a) Three physics professors at MIT have formed a business to improve the speed of information transfer over the Internet for stock exchange transactions, Each has contrit an equal amount of cash and knowledge to the venture. Although their approach looks promising, they are concermed about...
Which of these statements, applying US GAAP wherever applicable is false? A statement of financial position represents the fundamental accounting equation. There are 5 steps to determine revenue recognition in a standard that became effective for public companies in 2018 A balance sheet asset amount can be based on the future value of a current amount. All the accounts included in the calculation of net income are nominal accounts.
inment CALCULATOR FI Exercise 2-8 These financial statement items are for Nash's Trading Post, LLC at year-end, July 31, 2017. Salaries and wages payable $ 3,080 Salaries and wages expense 58,500 Supplies expense 16,600 Equipment 19,500 Accounts payable 4,100 Service revenue 67,100 Rent revenue 9,500 Notes payable (due in 2020) 2,800 Common stock 16,000 Cash 30,200 Accounts receivable 10,780 Accumulated depreciation-equipment 7,000 Dividends 4,000 Depreciation expense 5,000 Retained earnings (beginning of the year) 35,000 Prepare an income statement for the...
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