Instructions

Homework grading rubrics are in Course Content, Student Lounge.

1.A company determined the following values for its inventory as of the end of its fiscal year:

Historical cost$100,000

Current replacement cost70,000

Net realizable value90,000

Net realizable value less a normal profit margin85,000

Fair value95,000

2. Under IFRS, what items should the company use in determining the inventory value on its balance sheet.b) Explain why each of the items that you list are included in determining inventory.

IFRS requires the lower of cost or net realizable value. The company should use the net realizable value of $90,000 as inventory.

2.a) Under IFRS, explain which inventory items are included in valuing inventory at the lower of cost or net realizable value.b) Which inventory items are not included in valuing inventory at the lower of cost or net realizable value under IFRS.

3.a) Which method of accounting for inventory is not allowed under IFRS? b) Explain why it is not allowed.

4.a) For companies that prepare financial statements in accordance with IFRS, which valuation models should be used for property, plant and equipment? b) Explain why each of these models are acceptable under IFRS.

5.a) Under IFRS, what valuation methods are used for intangible assets? b) Explain why each of these valuation methods are acceptable under IFRS.

6.a) Explain the three major types of intangible assets, and how the accounting for them differs.

b) Explain how internally generated intangibles handled under IFRS and how this differs from U.S. GAAP. c) Explain which intangible assets are subject to annual impairment testing.

7.Explain how goodwill is measured in a business combination with a noncontrolling interest under IFRS.b) Explain what a gain on bargain purchase is under IFRS.

8. Explain the guidelines on selecting and changing accounting policies under IFRS