Revenue Recognition
IFRS defines probable that is greater than __ percent?
50%
Which accounting standard requires that overdrafts are treated as liabilities?
U.S. GAAP
Which method of inventory evaluation that is allowed under U.S. GAAP, is not allowed under IFRS?
LIFO (Last-in, first out)
Under IFRS, if an inventory write-down is no longer appropriate it must be ________, unlike under U.S. GAAP, where this is not allowed.
Reversed
Government grants are always recorded as revenue under IFRS. True/False
False
"____ probable" in IFRS is the same as "probable" in U.S. GAAP
highly
U.S. GAAP allows “available for sale” accounting for investments in ___ services but IFRS does not
Debt
What is one main reason that IFRS does not allow the LIFO inventory measurement method to be used?
Understating a company's earnings OR Inventory valuations becoming outdated on the balance sheet OR In cases of LIFO Liquidations artificially inflating earnings.
A ______ must be included in a company's financial statements about which inventory method is used and if a separate loss account is created from unusual and substantial write-downs.
Disclosure Note
________ are undertaken with the intent to gain new technical knowledge and are recognized as an expense.
Research Expenditures
In IFRS, you would only recognize revenue overtime for symbolic intellectual property if the ongoing activities of the seller affects the _____ the customer obtains from the intellectual property.
benefits
What model does IFRS use when estimating bad debts?
Expected Credit Loss
What would be a reason that a company would use the LIFO method to purposefully understate earnings?
To keep taxable income lower.
Under IFRS, the lower of cost or net realizable value rule is usually only applied to ______ and not the entire inventory unless allowed under specific circumstances.
Individual Items
Under the revaluation model, revaluation increases are recognized in _____ and accumulated in the "revaluation surplus" within equity.
Other Comprehensive Income