IFRS records market in the lower of cost or market differently than US GAAP

Ifrs records market in the lower of cost or market

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5. IFRS records market in the lower-of-cost-or-market differently than U.S. GAAP. Answers to True/False 1. True 2. False 3. False 4. True 5. True Multiple Choice Questions 1. Where is the authoritative IFRS guidance related to accounting and reporting for inventories found? a. IAS 2 b. IAS 18 c. IAS 41 d. All of these standards deal with inventory. 2. All of the following are key similarities between U.S. GAAP and IFRS with respect to accounting for inventories except 3. All of the following are key differences between U.S. GAAP and IFRS with respect to accounting for inventories except the
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Test Bank for Intermediate Accounting, Fourteenth Edition 9 - 50 4. Alonzo Company in Italy prepares its financial statements in accordance with IFRS. In 2012, it reported cost of goods sold of €600 million and average inventory of €150 million. What is Alonzo's inventory turnover ratio? 5. Starfish Company (a company using U.S. GAAP and LIFO inventory method) is considering changing to IFRS and the FIFO inventory method. How would a comparison of these methods affect Starfish's financials? a. During a period of inflation, the current ratio would decrease when IFRS and the FIFO inventory method are used as compared to U.S. GAAP and LIFO. b. During a period of inflation, the taxes will decrease when IFRS and the FIFO inventory method are used as compared to U.S. GAAP and LIFO. c. During a period of inflation, net income would be greater if IFRS and the FIFO inventory method are used as compared to U.S.GAAP and LIFO. d. During a period of inflation, working capital would decrease when IFRS and the FIFO inventory method are used as compared to U.S. GAAP and LIFO. 6. Which of the following statements is true regarding IFRS and inventories?
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