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Chapter 4 study guide
1. What are the types of differences that exist between IFRS and U. S. GAAP?
2. The International Accounting Standards Committee (IASC) issued a total of ______ International Accounting Standards (IAS) during the period 1973–2001.
3. The International Accounting Standards Board issued a total of ______ IFRS from 2001 to present.
4. In many cases, IFRS are more flexible than U.S. GAAP. True or False?
5. Inventory is an example of IAS that provides less extensive guidance than U.S. GAAP. True/False
6. What should include in the cost of inventories?
7. How does IAS 2 require inventory to be reported on the balance sheet? How does U.S. GAAP require inventory reported on the balance sheet?
8. Which items should be included in the cost of property, plant, and equipment under IAS 16?
9. What are the two models allowed for measuring property, plant, and equipment at dates subsequent to original acquisition?
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10. Define fair value in IAS 16.
11. If the enterprise chooses to follow the revaluation model, revaluation must be made ______ ________ that the carrying amount of assets does not differ materially from the assets’ fair value.
12. IAS 16 requires that all assets of _____ ______ ______ be revalued at the same time.
13. Revaluation increases are ______ directly to the other ____________ ________ component of ________ as a revaluation _________.
14. How is depreciation determined for an item of property, plant, and equipment that is comprised of significant parts, such as an airplane?
15. Depreciation under IAS 16 is conceptually the same as depreciation under U.S. GAAP. However, there are two important differences. What are they?
16. Under IAS 38, what is an intangible asset?
17. Which intangible assets are subject to annual impairment testing?
18. How are internally generated intangibles handled under IFRS? How does this