GAAP is the accounting standard used in the US, while IFRS is
the accounting standard used in over 110 countries around the
world. GAAP is considered more rules based and IFRS is more
principles based. Which standard do you feel is best suited for the
US and if the SEC decides to switch over to IFRS how will that
affect US companies?
Under GAAP, the consideration transferred in a business
combination would include all of the following, except:
Shares issued and given to the former owners of the acquired
company
Contingent consideration to be given to the former owners
depending on the future earnings of that company
Liabilities assumed by the purchaser
Legal and accounting fees paid by the acquirer
When Large bought Tiny, Large issued some new shares of Large
stock and gave them to the former owners of Tiny. In...
1.According to GAAP, to be useful, accounting information must
be all of the following EXCEPT:
Relevant
Reliable
Subjective
Comparable
2.
An increase in the cost of goods sold would cause a company’s
profit margin to
a. increase.
b. decrease.
c. remain unchanged.
d. Must be offset by an increase in the selling
price.
3.
Which of the following is not an element of internal
control?
Assigning responsibilities to individuals who have the
authority to administer them...
Please provide a description of the following topics and their
significance to US GAAP for each topic:
- Revenue recognition
- Leases
- Full disclosure (segment reporting and subsequent events)
Summarize IFRS/GAAP differences from the following:
Differences • Presentation of the income statement under GAAP
follows either a single-step or multiple-step format. IFRS does not
mention a single-step or multiple-step approach.
• Under IFRS, companies must classify expenses by either nature or
function. GAAP does not have that requirement, but the SEC requires
a functional presentation.
• IFRS identifies certain minimum items that should be presented on
the income statement. GAAP has no minimum information requirements.
However, the SEC rules...
Enumerate and briefly explain the differences between the IFRS
and US GAAP on the following issues:
• Treatment of Inventory and Valuation methods
• Treatment of Inventory write-down and Asset Impairment and
revaluation
• Treatment and determination of costs of Property, Plant, and
Equipment
• Treatment of Investment Properties
• Treatment of Research and development costs
• Treatment of Intangible Assets
• Treatment of Assets’ Impairment Loss
• Treatment of costs of borrowing to purchase or construct
assets
• Treatment...