Question One: (40points)

Indicate if the following statements if are true or false and justify your answer:

1. All differences between accounting income and tax income should always allocate between periods.

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2. All leases transactions should be expenses when are incurred.

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3. When company consolidated foreign subsidiary, we never take in consideration the subsidiary currency.

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4. We cant determine how much information should be disclosed to help user to take decisions, but there are general approaches to disclose.

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5. Convertible bonds can measure and recognized as equity.

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6. We should eliminate the variance between what accounting provides and what shareholders expect.

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