how the preparation of cash flow statement is similar or different under GAAP and IFRS. Access...
how the preparation of cash flow statement is similar or different under GAAP and IFRS. Access the Cash Flow Statement of a real company on the web that has prepared cash flow statement under IFRS and analyze how it is different from the GAAP preparation of cash flow.
Homework Answers
There are broadly 3 differences
Us GAAP :
Interest paid/received = operating activity
Dividend paid = financing
Where as in IFRS :
Interest paid/received/ dividend paid can be either financing / operating.
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how the preparation of cash flow statement is similar or different under GAAP and IFRS. Access...
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?
Which of the following is true regarding the statement of cash flows and IFRS? Cash and...
Which of the following is true regarding the statement of cash flows and IFRS? Cash and cash equivalents are defined differently under IFRS than under GAAP. Under IFRS most companies choose to use the direct method of reporting cash flows from operating activities. Companies preparing a complete set of financial statements under IFRS may exclude the statement of cash flows if the cash flow activity is reported in the notes to the financial statements. Under IFRS noncash investing and financing...
Under IFRS,balance sheet isoften called Select one: a. cash flow statement b. statement of changes in...
Under IFRS,balance sheet isoften called Select one: a. cash flow statement b. statement of changes in equity c. statement of balance d. statement of financial position
Indicate how the accounting treatment would be under US GAAP and IFRS in both situations. Post journal entries when necessary.
Ciclista Inc., a bicycle manufacturer, is preparing its financial statements for December 31, 2020. The company has identified the following legal situations that can be classified as contingencies.1. The company has discovered that a type of bicycle that they began to manufacture and sell in 2020 has some defects in the handlebars. The company has sent a statement to newspapers and magazines offering to replace the handlebars. The company estimates a cost of $ 400,000 for these repairs (This is...
Computation of deferred taxes under IFRS is slightly different from GAAP. For example, in the United...
Computation of deferred taxes under IFRS is slightly different from GAAP. For example, in the United Kingdom (which follows IFRS), companies use the crystallization approach. An equivalent concept in the United States is “realization.” The concept underlying this “crystallization” approach is that companies recognize deferred income taxes only if the taxes are expected to crystallize. Therefore, if liability is deferred indefinitely, then the present value of that liability is zero. No deferred tax liability is recognized if the accumulated deferred...
How do IFRS rules differ from U.S. GAAP (if at all). How would the reporting of...
How do IFRS rules differ from U.S. GAAP (if at all). How would the reporting of stock dividend change under using IFRS rules?
(9 You can use Variable Costing in financial statement preparation under GAAP for external reporting purposes....
(9 You can use Variable Costing in financial statement preparation under GAAP for external reporting purposes. True False
The cash flow statement was not required by GAAP until 1988. Why do you think the...
The cash flow statement was not required by GAAP until 1988. Why do you think the SEC added the cash flow statement to the required annual reports? What is its importance for managers and external investors? What is the importance of Ratio Analysis for both management and external investors?
Indicate whether each of the following describes an accounting treatment that is acceptable under IFRS, U.S....
Indicate whether each of the following describes an accounting treatment that is acceptable under IFRS, U.S. GAAP, both, or neither. A company takes out a loan to finance the construction of a building that will be used by the company. The interest on the loan is capitalized as part of the cost of the building. Inventory is reported on the balance sheet using the last-in, first-out (LIFO) cost flow assumption. ,The gain on a sale and leaseback transaction classified as...
The cash flow statement was not required by GAAP until 1988. Why do you think the...
The cash flow statement was not required by GAAP until 1988. Why do you think the SEC added the cash flow statement to the required annual reports? What is its importance for managers and external investors? What is the importance of Ratio Analysis for both management and external investors? (Answer in one or two brief, but well-developed, paragraphs.)
Indicate whether each of the following describes an accounting treatment that is acceptable under IFRS, U.S. GAAP, both, or neither. A company takes out a loan to finance the construction of a building that will be used by the company. The interest on the loan is capitalized as part of the cost of the building. Inventory is reported on the balance sheet using the last-in, first-out (LIFO) cost flow assumption. ,The gain on a sale and leaseback transaction classified as...
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