15

1.Regarding inventory, reversals of prior write-downs are allowed using IFRS, but not using US GAAP.

True

False

16

1.The following information is available for Product D:

Cost800

Market (replacementcost)300

Sellingprice900

Sellingcost(250)

NRV?

Normalprofit(200)

NRV - normalprofit?

Under IFRS the item would be reported at:

a.

800

b.

650

c.

450

d.

300

17

1.Generally, IFRS only allows discounting when the liability and the timing of payments are fixed or reliably determinable

True

False

18

1.Under IFRS, companies have the choice of recognizing actuarial gains and losses immediately in income, or in other comprehensive income, or amortizing them over the expected remaining service lives of employees.

True

False

19

1.Under IFRS, a provision for a contingent liability is typically only discounted when the timing of the related cash flows is fixed.

True

False

20

1.Under IFRS, for a "capital" lease it is preferred that the lessee use the:

a.

incremental rate

b.

implicit rate

c.

implicit rate if it is less than the incremental rate

d.

incremental rate if it is less than the implicit rate