Please Answer All Questions in Detail.
1. Explain the difference between GAAP and IFRS using the descriptions of rules-based and principles-based. (see p. 50, 167) 2. From p. 81, QS 2-10 a. What type of journal entry system is applied when accounting follows IFRS? (see p. 50, Transaction Analysis, p. 96) b. Identify the number and usual titles of the financial statements prepared under IFRS. (see p. 73, 96) c. How do differences in accounting controls and enforcement impact accounting reports prepared across different countries? ( see p. 97) 3. From p. 145, QS 3-28 a. Do financial statements prepared under IFRS normally present assets from least liquid to most liquid or vice versa? (see p. 166, including the Piaggio Balance Sheet) b. Do financial statements prepared under IFRS normally present liabilities from furthest from maturity to nearest to maturity or vice versa? (see p. 166, including the Piaggio Balance Sheet) 4. From p. 209 QS 4-23 a. Explain how the accounting for merchandise purchases and sales is different between accounting under IFRS versus U.S. GAAP. (see p. 224) b. Income statement prepared under IFRS usually report an item titled finance costs. What do finance costs refer to? (see p. 224) 4. From p. 209 QS 4-23 a. Explain how the accounting for merchandise purchases and sales is different between accounting under IFRS versus U.S. GAAP. (see p. 224) b. Income statement prepared under IFRS usually report an item titled finance costs. What do finance costs refer to? (see p. 224) c. U.S. GAAP prohibits alternative measures of income reported on the income statement. Does IFRS permit such alternative measures on the income statement? (see p. 224) 5. From p. 262 QS 5-23 a. Explain how the accounting for items and costs making up merchandise inventory is different between IFRS and GAAP. (see p. 275) b. Can companies reporting under IFRS apply a cost flow assumption in assignment costs to inventory? If yes, identify at least two acceptable cost flow assumptions (under IFRS). (see p. 275) c. Both IFRS and U.S. GAAP apply the lower of cost or market method for reporting inventory values. If inventory is written down from applying the lower of cost or market method, explain in general terms how IFRS and U.S. GAAP differ in accounting for any subsequent period reversal of that reported decline in inventory value. (see p. 275) 6. From QS 6-10, p. 306 (see pp. 318-319) a. Explain how the purposes and principles of internal controls are different between accounting systems ranortin under IEDS and IT CAAD 6. From QS 6-10, p. 306 (see pp. 318-319) a. Explain how the purposes and principles of internal controls are different between accounting systems reporting under IFRS and U.S. GAAP. b. Cash presents special internal control challenges. How do internal controls for cash differ for accounting systems reporting under IFRS versus U.S. GAAP? How do the procedures applied differ across those two accounting systems? 7. From QS 7-13, p. 344 (see p. 355) Answer each of the following related to international accounting standards. a. Explain (in general terms) how the accounting for recognition of receivables is different between IFRS and U.S. GAAP. b. Explain (in general terms) how the accounting for valuation of receivables is different between IFRS and U.S. GAAP. 8. From QS 8-15, p. 388 (see p. 399) a. Accounting for plant assets involves cost determination, depreciation, additional expenditures, and disposals. Is plant asset accounting broadly similar or dissimilar between IFRS and U.S. GAAP? b. Describe how IFRS and U.S. GAAP treat increases in the value of plant assets subsequent to their acquisition (but before their disposal). 9. From QS 9-14, p. 430 (see p. 445) a. In general, how similar or different are the definitions and characteristics of current liabilities between IFRS and U.S. GAAP? 10. From QS 12-20, p. 570 (see p. 585) 1. Which method, indirect or direct, is acceptable for reporting operating cash flows under IFRS? 2. For each of the following four cash flows, identify whether it is reporting under the operation, investing, or financing section (or some combination using the indirect method of reporting on the statement of cash flows under IFRS and U.S. GAAP. U.S. GAAP Reporting IFRS Reporting Cash Flow Source a. Interest paid b. Dividends paid c. Interest received d. Dividends received
