Which of the following regarding the recognition of contingencies is not correct?

IFRS guidance is built around a balance sheet perspective.

Both IFRS and U.S. GAAP require recognition of a contingent liability when it is both probable and can be reasonably estimated.

U.S. GAAP relies on an income statement perspective.

Only U.S. GAAP requires recognition of a contingent liability, called a provision under IFRS—and the associated contingent loss—when it is both probable and can be reasonably estimated.

3. The FED is worried that the value of the U.S. dollar will continue to rise relative to the EU euro in 2018. So it is looking to reduce interest rates.

a. Explain what actions it is likely to take using macroeconomic measurements and models and analyze what is likely to happen to U.S. GDP and inflation.

b. Use macro models and macro movement sequences to explain two “risks” to the U.S. economy that could hamper the effectiveness of the monetary policy in 2018-2019.

*List the due process steps followed by the FASB to establish financial accounting and reporting standards. You can find the answer at fasb.org.

*List the purpose of forms 10-Q, 10-K, and 8-K that a U.S. registrant is required to file with the U.S. Securities and Exchange Commission under the Securities and Exchange Act of 1934.

*List the significant components of Form 10-Q and Form 10-K filed with the U.S. Securities and Exchange Commission.

Discuss the evolution of the U.S current account deficit and net foreign assets: how much of the evolution of the deficit (as a share of GDP) is due to changes in private savings, public savings (fiscal deficits) and investment rate (all as a share of GDP) and how much has the role of different factors changed over time? - Based on this analysis, are the U.S. current account and external debt sustainable? Does the U.S. differ or not from emerging markets or not and why?

The combination of falling U.S. housing prices and the large number of subprime borrowers defaulting on their mortgages just prior to the financial crisis of 2008 created a solvency problem for U.S. commercial banks that had provided mortgage loans to subprime borrowers and held those mortgages on their balance sheets (ie. they did not sell them to Special Purpose Vehicles). Briefly explain how these two events could threaten to make those U.S commercial banks insolvent.

The combination of falling U.S. housing prices and the large number of subprime borrowers defaulting on their mortgages just prior to the financial crisis of 2008 created a solvency problem for U.S. commercial banks that had provided mortgage loans to subprime borrowers and held those mortgages on their balance sheets (ie. they did not sell them to Special Purpose Vehicles). Briefly explain how these two events could threaten to make those U.S commercial banks insolvent.

Assume the following information:

interest rate parity doesn’t exist and covered interest arbitrage by U.S. investors results in a yield of _______ which is above what is possible domestically

(history) The U.S. in the Caribbean Please answer the following short-answer questions. Your answers should be paragraph-length (between 100 to 200 words)

1) How did the United States obtain control of the Panama Canal? What were the characteristics of the construction of the Canal under the U.S., when did the Canal open and what is its significance?

2) How would you characterize the relationship between the U.S. and so-called “Banana Republics”?

a) Northwest Inc. operates manufacturing facilities in Portland Oregon and Vancouver, Canada. In the current year, the Portland plant generated $3.1 million net domestic taxable income and the Vancouver plant generated $4.8 million net foreign taxable income. The Vancouver plant is not held through a Canadian subsidiary.

What is Northwest's current year taxable income?

b) In the example above, how much U.S. tax could Northwest save in the current year if it held its Vancouver plant through a Canadian subsidiary? Assume a 34% U.S. tax rate and a 25% Canadian tax rate. Remember that the Canadian tax would be credited against the U.S. tax if the Vancouver income were currently taxable in the U.S.