CPA Financial Accounting and Reporting (FAR) › IFRS vs. GAAP
IFRS requires which revenue recognition method when the outcome of rendering services cannot be estimated reliably?
Percentage of completion method
Completed contract method
Installment sales method
Cost recovery method
IFRS requires that the cost recovery method be used with an outcome of rendering services is uncertain.
Which of the following statements regarding research and development under IFRS is correct?
Under IFRS, research and development related expenses are both expensed
Under IFRS, research and development related expenses are both capitalized
Under IFRS, research related costs are expensed and development costs are capitalized
Under IFRS, research related costs are capitalized and development costs are expensed
Under IFRS, research related costs are expensed and development costs are capitalized
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
A
B
Both
Neither
Both of these items should be disclosed under US GAAP. Generally, more pieces of information should be disclosed than less.
Which of the following statements regarding the accounting for investment property under IFRS is correct?
If the entity elects the fair value method, no depreciation expense will be taken.
Gains and losses from fair value adjustments on investment property are reported on the income statement.
Both of the above
None of the above
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.
Which of the following statements regarding the accounting for investment property under IFRS is correct?
If the entity elects the fair value method, no depreciation expense will be taken.
Gains and losses from fair value adjustments on investment property are reported on the income statement.
Both of these
None of these
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.