False. Any company claiming compliance with IFRS must comply with all standards and
interpretations, including disclosure requirements.
False. The SEC is the governmental body that has influence over the FASB, not the
Statement of Financial Position and Statement of Cash Flows
EXERCISE 5-1 (1520 minutes)
If the investment in preference shares is readily marketable and held
primarily for sale in the near term to generate income on short-term
EXERCISE 8-2 (1015 minutes)
Inventory per physical count.
Goods in transit to customer, f.o.b. destination.
Goods in transit from vendor, f.o.b. shipping point.
Inventory to be reported on statement of financial position.
EXERCISE 7-2 (1015 minutes)
Cash balance of $925,000. Only the checking account balance
should be reported as cash. The certificates of deposit of
be reported as a temporary investment, the cash advance to
subsidiary of $980,000 sh
EXERCISE 2-1 (1015 minutes)
(b) False. General purpose financial reporting helps users who
lack the ability to demand all the financial information they
need from an entity and therefore must rely, at least partly, on
the information provided in