October 23, 2016
Case 8-2 Palmerstown Company
January 1, Year 1
January 1-31, Year 1
Average Year 1
When inventory purchases made
When ending inventory acquired
December 31, Year 1
Krystina M. Armstrong
Page 161 #11
11. What are the three major types of intangible asset, and how does the accounting for them differ?
IAS 38 defines an intangible asset as an identifiable, nonmonetary asset without physical
substance held for us
ACCT 435 International Accounting
1. How does the principle of conservatism play a role in countries where there is a close linkage
between accounting and taxation?
Conservatism principle is when adopting a more cautious approac
Case 6-1 pg. 329-336
1. The net profit figures are reported under PRC GAAP as RMB 19,011 million, under IFRS
as RMB 21,593, and under U.S. GAAP as RMB 25,577. PRC GAAP is reported as the
The increase RMB
Chapter 4 Question 9
9. How is an impairment loss on property, plant and equipment determined and measured under
IFRS? How does this differ from U.S. GAAP?
Under IFRS an impairment loss is determined when the carrying amount exceeds its
Group 1 criteria
1. Transfer of ownership?
2. Purchase option likely to be exercised?
3. Leases term major part of economic life
The lease term is 90% of economic life
4. Present value substantial part of fair value?
The present value of the lease payment