IFRS vs. GAAP - CPA Financial Accounting and Reporting (FAR)

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Question

IFRS requires which revenue recognition method when the outcome of rendering services cannot be estimated reliably?

Answer

IFRS requires that the cost recovery method be used with an outcome of rendering services is uncertain.

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Question

Which of the following statements regarding research and development under IFRS is correct?

Answer

Under IFRS, research related costs are expensed and development costs are capitalized

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Question

Which of the following statements regarding the accounting for investment property under IFRS is correct?

Answer

Under IFRS, no depreciation expense is recorded under the fair value method. Also under IFRS, gains and losses from fair value adjustments on investment property are recorded on the income statement.

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Question

Which of the following statements regarding the accounting for investment property under IFRS is correct?

Answer

Under IFRS, no depreciation expense is recorded under the fair value method. Also under IFRS, gains and losses from fair value adjustments on investment property are recorded on the income statement.

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Question

Under US GAAP, which of the following should be disclosed for for each reportable operating segment of an enterprise? A) Profit or loss B) Total Assets

Answer

Both of these items should be disclosed under US GAAP. Generally, more pieces of information should be disclosed than less.

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