Chapter
3
1. How does
harmonization differ from convergence?
2. What are the
potential benefits that a multinational corporation could derive
from the
international convergence of accounting standards?
3. Were the EU
directives effective in generating comparability offinancial
statements across companies located in member nations? Why or why not?
4. What were the
three phases in the life of the IASC?
5. Why was IOSCO’s endorsement of IASs
so important to the IASC’s
efforts?
6.
How does the structure of the IASB help to establish its legitimacy as a global
standard-setter?
7. What is the IASB’s principles-based
approach to accounting standard-setting?
8. Are there any
major accounting issues that have not yet been covered by IFRS?
9. Do you see a
major change of emphasis in the harmonization process since the
establishment of
the IASB? Explain.
10. What are the
different ways in which IFRS might be used within a country?
11. Would the
worldwide adoption of IFRS result in worldwide comparability of
financial
statements? Why or why not?
12. In what way is
the IASB’s
Framework intended to assist firms in preparing IFRS-based financial
statements?
13. As expressed in
IAS 1, what is the overriding principle that should be followed in preparing
IFRS-based financial statements?
14.Under
what conditions should a firm claim to prepare financial statements in
accordance with IFRS?
15.To
what extent have IFRS been adopted by countries around the world?
16.How has the U.S. SEC policy toward IFRS changed?
2.Since
2005, publicly traded companies in the European Union have been required to use
IFRS in preparing their consolidated financial statements.
Required:
a. Explain the EU’s
objective in requiring the use of IFRS.
b. Identify and describe two issues that might hamper
the EU from achieving the objective underlying the use of IFRS.
7.The
appendix to this chapter describes what is commonly referred to as Anglo-Saxon
accounting.
Required:
Explain why Anglo-Saxon accounting might be of
interest to Chinese accounting regulators.
8. In its 2003 annual report, Honda Motor Company Ltd.
states:
Required:
Discuss the possible reasons for Honda to prepare its
consolidated financial statements in conformity with U.S. GAAP.
10.The Financial Times, on
Tuesday, April 13, 2004, made the following comment in its editorial“Parmalat:
Perennial Lessons of European Scandal: Urgent need for better enforcement and
investor scepticism”:
Required:
Discuss the lessons referred to above concerning the
objectives of the current efforts at setting global standards for accounting
and financial reporting.
Chapter
4
1.
What are the types of differences
that exist between IFRS and U.S. GAAP?
2.
How does application of
the lower of cost or market rule for inventories differ between IFRS and U.S.
GAAP?
3.
How are the estimated
costs of removing and dismantling an asset handled upon initial recognition of
the asset?
4.
What are the two models
allowed for measuring property, plant, and equipment at dates subsequent to
original acquisition?
Which items of
property, plant, and equipment may be accounted for under the revaluation
model, and how frequently must revaluation occur?
5.How
is the revaluation surplus handled under the revaluation model?
6.How
is depreciation determined for an item of property, plant, and equipment that
is comprised of significant parts, such as an airplane?
7.In
what way does the fair value model for investment property differ from the revaluation
model for property, plant, and equipment?
8.How
is an impairment loss on property, plant, and equipment determined and measured
under IFRS? How does this differ from U.S. GAAP?
9.When
a previously recognized impairment loss is subsequently reversed, what is the
maximum amount at which the affected asset may be carried on the balance sheet?
10.What
are the three major types of intangible asset,and how does the accounting for
them differ?
11.How
are internally generated intangibles handled under IFRS ? How does this differ
from U.S. GAAP?
12.Which
intangible assets are subject to annual impairment testing?
13.How
is goodwill measured in a business combination with a non-controlling interest?
14.What
is a gain on bargain purchase?
15.What
is the process for determining whether goodwill allocated to a specific
cash-generating unit is impaired?
16.What
is the current treatment with respect to borrowing costs?
17.What
are the differences in the amount of borrowing costs that can be capitalized
under IFRS and U.S. GAAP?
18.How
do the criteria for determining whether a lease qualifies as afinance(capitalized)
lease differ between IFRS and U.S. GAAP?
19.What
is the difference between IFRS and U.S. GAAP with regard to there cognition of
gains and losses on sale–leaseback
transactions?
20.How
does the classification of interest and dividends in the statement of cash
flows differ between IFRS and U.S. GAAP?
21.What
is the cutoff date for the occurrence of events after the reporting period
requiring adjustment to the financial statements?
22.What are the
guidelines on selecting and changing accounting policies?
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