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93. Indicate whether each of the following describes an accounting treatment that is acceptable under IFRS, U.S. GAAP, both, or neither, by checking the appropriate

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93. Indicate whether each of the following describes an accounting treatment that is acceptable under IFRS, U.S. GAAP, both, or neither, by checking the appropriate box. Page 153 Acceptable Under IFRS US. GAAP Both Neither . A company takes out a loan to finance the construction of a building that will be used by the company. The interest on the loan is capitalized as part of the cost of the building. Inventory is reported on the balance sheet using the last-in, first-out (LIFO) cost flow assumption. A company owns 40 percent of a foreign entity's voting stock but consolidates the entity bcause it controls the entity's operating and financial decisions through other means. . A company writes a fixed asset down to its recoverable amount and recognizes an impairment loss in Year 1. In a subsequent year, the recoverable amount is determined to exceed the asset's carrying value, and the previously recognized impairment loss is reversed. . ly . A company pays less than the fair value of net assets acquired in the acquisition of another company. The acquirer recognizes the difference as a gain on purchase of another company . A dairy company records a herd of milk cows at fair value based on an independent appraisal. An intangible asset with an active market that was purchased two years ago is carried on the balance sheet at fair value. A company that accounts for inventory using the first-in, first-out (FIFO) method records a write-down of a product line to its net realizable value. . A manufacturer capitalizes development costs for an industrial product when certain criteria are met. . A hotel contains a shopping arcade filled with independent retailers. The hotel measures the arcade's fair value each accounting period and includes valuation gains and losses in that period's income statement

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