TRUE AND FALSE 1. Both U.S. GAAP and lFRS discuss income statement presentation using either a single-step or multi-step approach. 2. Under lFRS, both revenues and expenses and other income and expenses are reported as part of income from operations. 3. IFRS allows for revaluation of long-term tangible and intangible assets with the differences impacting equity but not net income. 4. Both lFRS and U.S. GAAP allow for comprehensive income to be reported in either a Statement of Stockholders' Equity or a Statement of Recognized Income and Expense. 5. Under lFRS, a company may classify expenses by function, but must also disclose the classification of expenses by nature. Multiple Choice: 6. The lFRS income statement classification of expenses by nature results in descriptions which include all of the following except a. salaries b. depreciation c. distribution d. utilities 7. Taylor Company owns more than 50 percent of the ordinary shares of Wesson Company. Assume Taylor net income of $225,000 is allocated as $180,000 to Taylor and Or5,000 to noncontrolling interest. In Taylor's consolidated income statement that includes Wesson, under lFRS, how will the amount of noncontrolling interest be reported? a. $45,000 will be presented as an item of expense below the net income. b. Or5,000 will be presented as an item of expense above the net income. c. $45,000 will be presented as an allocation to net income below the net income. d. Or5,000 will not be presented on the face of the income statement. 8. An lFRS statement might include all of the following except a. net income orloss. b. unrealized gains or losses on the revaluation of long-term assets. c. cumulative effect of a change in accounting principle. d. extraordinary gain or loss. 9. Discontinued operations of a component of a business are classified as a separate item in the income statement: a. after "income from continuing operations". b. before "income from continuing operations''. c. between income from operations and income before income tax. d. immediately after "gross profit". Qu\# + F%89- 10. If a company prepares a consolidated income statement, lFRS requires that net income be reported for: a. the controlling interest only. b. the noncontrolling interest only. c. both the controlling and the noncontrolling interest. d. as a single amount only. 11. Vvhich of the following is true of expense classification under lFRS? a. The nature-of-expense method identifies the major cost drivers of the company. b. The nature-of-expense method does not classify the expenses into various subtotals. c. The function-of-expense method is simple to apply because allocations of expense to different functions are not necessary. d. IFRS allows only function-of-expense method for expense classification.