Chapter 4 study guide 1. The International Accounting Standards Committee (IASC) issued a total of ______ International Accounting Standards (IAS) during the period 1973–2001.

2. The International Accounting Standards Board issued a total of 14 _____ ________ _______ ______ from 2001 to present.

3. In many cases, IFRS are more __________ than U.S. GAAP..

4. Inventory is an example of IAS that provides less extensive guidance than U.S. GAAP. a. True/False 5. What should include in the cost of inventories?

6. List costs that are not included in the costs 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?

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8. How does application of the lower of cost or market rule for inventories differ between IFRS and U. S. GAAP?

9. Which items should be included in the cost of property, plant, and equipment under IAS 16?

10. What are the two models allowed for measuring property, plant, and equipment at dates subsequent to original acquisition?

11. Define fair value in IAS 16.

12. 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.

13. IAS 16 requires that all assets of _____ ______ ______ be revalued at the same time.

14. Revaluation increases are ______ directly to the other ____________ ________ component of ________ as a revaluation _________.

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15. What is the treatment of revaluation surpluses and deficits under IAS 16?

16. How is depreciation determined for an item of property, plant, and equipment that is comprised of significant parts, such as an airplane?

17. Depreciation under IAS 16 is conceptually the same as depreciation under U.S. GAAP. However, there are two important