Question

International accounting. I

1.Canadian securities regulations require use of _______.

US GAAP

Canadian GAAP

IFRS

US GAAP or Canadian GAAP

None of the answers apply

2.

In Mexico a company can use_______ for financial reporting.

IFRS

US GAAP

NAFTA

US GAAP or IFRS

None of the answers apply.

3.

The _____ underpins any accounting standards in the United States.

SEC

FASB

AICPA

PCAOB

None of the answers apply.

4.

Rules for filing annual financial statements that are submitted to the SEC are contained in _____.

Codification

FASB pronouncements

regulation SX and SK

PCAOB pronouncements

None of the answers apply.

Which method is allowed in US GAAP but not IFRS?

Recording of capital gains on the income statement.

Recording of doubtful accounts on the income statement.

Recording of extraordinary items on the income statement.

Recording of amortization cost on the income statement.

None of the answers apply

Answer 1

1 . Canadian securities regulations require use of ------. (Option 3)

a) IFRS mandatory from 1^st January 2011

2) In Mexico a company can use IFRS for financial reporting (Option 1)

a) IFRS

Note: Mexico. All listed companies must follow IFRS Standards except for financial institutions and insurance companies

3) The -------- underpins any accounting standards in the United States (Option 2)

a) FASB(Financial Accounting Standards Board )

NOTE:

The SEC expressed their aim to fully adopt International Financial Reporting Standards in the U.S. by 2014.

FASB: The FASB is recognized by the Securities and Exchange Commission as the designated accounting standard setter for public companies. FASB standards are recognized as authoritative by many other organizations, including state Boards of Accountancy and the American Institute of CPAs (AICPA). The FASB develops and issues financial accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to investors and others who use financial reports

AICPA: Accounting standards have historically been set by the American Institute of Certified Public Accountants (AICPA) subject to Securities and Exchange Commission regulations. ... The SEC expressed their aim to fully adopt International Financial Reporting Standards in the U.S. by 2014

PCAOB: PCAOB determines audit standards not accounting standards.

4) Rules for filing annual financial statements that are submitted to the SEC are contained in

a) Regulation SX and SK

   (Option 3)

5 Which method is allowed in US GAAP but not IFRS?

1. Recording of doubtful accounts on the income statement. (Option 2)

Note: The allowance for doubtful accounts is used to anticipate that some accounts receivable will not be collected. U.S. GAAP states that the conditions under which receivables exist usually involve some degree of uncertainty about their collectability, in which case a contingency exists. The loss from uncollectible receivables needs to be reflected on the income statement and balance sheet in order to present a fair depiction of the state of the company