Accounting-7801182

Accounting-7801182 - short-term convergence project? a....

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1. Which of the following is not one of the FASBs initiatives to converge with IASB standards. a. The FASB eliminates differences between FASB and IASB standards by adopting IASB requirements, or vice verse, in a short term convergence project. b. The FASB considers the possibility of convergence with IASB standards when deciding which topics to add to its work agenda c. A member of the FASB serves as a liaison with the IASB by working out of the IASB’s offices in London d. A joint project develops a common conceptual framework that both the FASB and IASV could use as a basis for Future standards Solution : Correct option is (c) . A member of the FASB serves as a liaison with the IASB by working out of the IASB’s offices in London Explanation : Member of IASB (not FASB) serves as the liaisoning Officer on site at the FASB offices to promote convergence. 2. Which of the following describes an IASB requirment that the FASB has adopted as part of the
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Unformatted text preview: short-term convergence project? a. Following the IASB format for presentation of a statement of comprehensive income b. Retrospective application of the new accounting principle when a change in accounting principle occurs c. Using the cost recovery method when the percentage of completion method is not appropriate for long-term construction contracts d. Eliminating LIFO as an acceptable inventory cost flow method. Solution: Correct option is (A) Following the IASB format for presentation of a statement of comprehensive income 3. Which of the following IASB standards is a result of the FASB-IASB short-term convergence project? a. IFRS 1, First time adoption of IFRS b. IFRS 2. share based payment c. IFRS 3, business combination d. IFRS 4, operating segments Solution: Correct option is (b) IFRS 2-Share based Payment...
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This note was uploaded on 02/21/2012 for the course ACT 492 taught by Professor Ngo during the Fall '11 term at Colorado.

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