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7. Which of the following must be done when accounting for depreciation under IFRS GAAP but can be done under U.S. GAAP?
a.
b. Depreciate by nature
c. Depreciate by components
d. All of these
8. When accounting for
a. likely
b. more likely than not
c. possible
d. none of these
9. When accounting for contingent liabilities U.S. GAAP defines ‘probable’ as
a. likely
b. more likely than not
c. possible
d. none of these
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- Actuarial (Remeasurement) gains and losses are reported as OCI as they occur using a. U.S. GAAP. b. IFRS. c. Both U.S. GAAP and IFRS. d. Neither U.S. GAAP nor IFRS.41.Which of the following shall be taken into consideration when measuring and recognizing impairment loss on receivables?A. Past experiences on the collectability of the receivablesB. Present condition of the debtor, including the present economic environmentC. Future expectations based on information that are available without undue cost and effort a. A, B and C b. A and B only c. A only d. B onlyWhich of the following is most accurate in describing the measurement of assets and liabilities? a. Fair value should be used as often as possible. b. Assets are marked at historic cost, especially for U.S. GAAP, and liabilities are recorded at present value. c. A number of different methods are allowed for calculating asset and liability values.
- II. When the cárrying amount or the expected ultimate cost of the qualifying asset exceeds its recoverable amount or net realizable period shall not exceed the amount of borrowing costs it incurred I. The amount of borrowing costs that an entity capitalizes during a Which of the following statements is correct? in that period. value, the carrying amount is written down or written off i accordance with the requirements of other Standards. a. Ionly C. Both I and II b. II only d. Neither I nor II1. PAS 23 does not require which of the following disclosures? * A. The capitalization rate used to determine the capitalizable borrowing costs. B. PAS 23 requires the disclosure of all these information. C. The amount of borrowing costs capitalized during the period. D. Separate presentation of qualifying assets from other assets either on the face of the statement of financial position or in the notes. 2. How much is the cost of the qualifying asset on initial recognition? * A. 15,045,000 B. 13,010,000 C. 14,970,900 D. 14,920,000 3. According to PAS 23, borrowing costs are capitalized when * A. They relate directly to the acquisition, construction, or production of a qualifying asset. B. The entity chooses to capitalize them C. They are material and are expected to be incurred over more than one reporting period. D. All of the options1. Compare and contrast how book (GAAP) depreciation expense vs. MACRS depreciation deductions are computed.
- What is the purpose of recognizing depreciation on the financial statements? Is it designed to report PPE at fair value on the balance sheet?Statement 1: Measurement period is relevant if Fair Value of Net Assets of acquiree includes the recognition of the contingent asset, contingent liability, and assets/liabilities with provisional amounts. Statement 2: Measurement period is relevant for the remeasurement fo all contingent considerations. A. Both Statetements are Correct B. Both Statements are Incorrect C. Only Statement 1 is Correct D. Only Statement 2 is CorrectLong-term operating assets can be reported on the balance sheet at fair value instead of historical cost. Does this statement apply to IFRS and U.S. GAAP? Group of answer choices It does not apply to IFRS and U.S. GAAP. It applies to U.S. GAAP only. It applies to both IFRS and U.S. GAAP. It applies to IFRS only.
- 10. In accordance with PAS 1, which of the following gains or losses from reclassification of financial assets need not be presented separately in the profit or loss section or the statement of profit or loss?a. Reclassification of financial assets out of the amortized cost measurement category to FVTPL. b. Reclassification of financial assets out of theFVTOCI measurement category to FVTPL.c. Reclassification of financial assets out of the FVTPLmeasurement category. d. None of these.10. In accordance with PAS 1, which of the following gains or losses from reclassification of financial assets need not be presented separately in the profit or loss section or the statement of profit or loss?a. Reclassification of financial assets out of the amortized cost measurement category to FVTPL. b. Reclassification of financial assets out of theFVTOCI measurement category to FVTPL.c. Reclassification of financial assets out of the FVTPLmeasurement category. d. None of these. 11. In accordance with PAS 1, which of the following expenses need not be presented separately in the profit or loss section or the statement of profit or loss? a. Finance costsb. Share of loss of associates c. Tax expensed. Depreciation expense 12. You are preparing the income statement of Anonymous Company for the year ended December 31, 2020. You determine that company's income from continuing operations before income taxes is P2,400,000.…1. Statement 1: Measurement period is relevant if Fair Value of Net Assets of acquiree includes the recognition of contingent asset, contingent liability and assets/liabilities with provisional amounts. Statement 2: Measurement period is relevant for the remeasurement of all contingent considerations. Group of answer choices Both statements are incorrect. Both statements are correct. Only statement 2 is correct. Only statement 1 is correct.