Q 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

Q 21

1.Both IFRS and US GAAP permit the reclassification of short-term obligations to long-term obligations if a company intends to refinance the short-term debt on a long-term basis, and the company can demonstrate its ability to consummate the refinancing; however IFRS requires the refinancing to be consummated by the balance sheet date .

True

False

Q 22

1.When outcomes are uncertain regarding possible future losses, under IFRS it is less likely that a provision will be recorded than it is that a comparable contingency would be recorded under US GAAP.

True

False

Q 23

1.Under IFRS, past service cost (prior service cost) associated with vested employees is

a.

amortized over the remaining service life of the employees

b.

expensed as amortized over a period not to exceed five years

c.

deferred unless the amount is greater than 10% of greater of the projected benefit obligation or plan assets

d.

expensed immediately

Q 24

1.Regarding contingencies, under GAAP, the definition of probable is

a.

more likely than not to occur

b.

likely to occur

c.

reasonably possible to occur

d.

None of these

Q 25

1.Regarding contingencies, under IFRS, the definition of probable is

a.

more likely than not to occur

b.

likely to occur

c.

reasonably possible to occur

d.

None of these