pack 2 11-13 - A company acquired a new piece of equipment...

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A company acquired a new piece of equipment on January 1, 2009 at a cost of $200,000. The equipment is expected to have a useful life of 10 years, a residual value of $20,000 and is depreciated on a straight-line basis. On January 1, 2011, the equipment was appraised and determined to have a fair value of $190,000 and a residual value of $25,000 and a remaining useful life of 10 years. 8. award: 0 out of 1 point At what amount should the equipment be reported on the December 31, 2011 balance sheet under the IFRS cost model? $160,000 $150,000 $146,000 $140,000 $116,000 Under the IFRS cost model the equipment would be reported at depreciated historical cost. (200,000-20,000)/10 years or $18,000 per year. After 3 years the book value is (200,000-54,000) or $146,000. references The IASB and FASB are working on several joint projects. What is the purpose of the Financial Statement Presentation Project? to provide guidance on the application of the acquisition method. to enhance the usefulness of information in assessing the financial performance of the reporting enterprise. to develop a common comprehensive standard on revenue recognition. to develop a common conceptual framework that both boards can use as a basis for future standard- setting. to agree upon financial statement titles that will have no differentiation after translation to various languages. The following information pertains to inventory held by a company at December 31, 2011. 10. award: 0 out of 1 point
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What amount of inventory should be reported under IFRS? $25,000 $21,000 $20,000 $4,000 $5,000 According to IFRS, inventory will be reported at lower of cost or net realizable value. Which of the following is not a way for a country to use IFRS? Require foreign companies listed on that country's stock exchange to use IFRS for consolidated financial statements. Allow foreign companies listed on that country's stock exchange to use IFRS . Allow that country's companies listed on its stock exchange to use IFRS. Adopt IFRS as that country's national GAAP. All of the above are ways a country can use IFRS. The IASB and FASB are working on several joint projects. What is the purpose of the Revenue Recognition Project? to provide guidance on the application of the acquisition method. to enhance the usefulness of information in assessing the financial performance of the reporting enterprise. to develop a common comprehensive standard on revenue recognition. to develop a common conceptual framework that both boards can use as a basis for future standard- setting. to agree upon financial statement titles that will have no differentiation after translation to various languages. A company incurs research and development costs of $200,000 in 2011 of which $50,000 of these costs relate to development activities because certain criteria have been met which suggest that an intangible asset has been created. 13.
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This note was uploaded on 03/06/2012 for the course ADVANCED A 4110 taught by Professor Fridel during the Spring '11 term at University of Minnesota Duluth.

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pack 2 11-13 - A company acquired a new piece of equipment...

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