Indicate T(true) or F(false): 1. _______ iGAAP and U.S. GAAP are very similar in
ID: 2356875 • Letter: I
Question
Indicate T(true) or F(false): 1. _______ iGAAP and U.S. GAAP are very similar in accounting for cash and receivables. 2. _______ iGAAP does not permit the reversal of impairment losses, as does U.S. GAAP. 3. _______ Under iGAAP, there is a specific standard that mandates segregation of receivables with different characteristics. 4. _______ Under iGAAP, there is no specific standard related to pledging receivables. 5. _______ Both the FASB and IASB have indicated that they believe all financial instruments should be recorded and reported at fair value. 6. _______ Who owns the goods, as well as the costs to include in inventory, are essentially accounted for the same under IFRS and U.S. GAAP. 7. _______ U.S. GAAP has less detailed rules related to the accounting for inventories, compared to IFRS. 8. _______ IFRS does not permit the LIFO method to account for inventories. 9. _______ Many U.S. companies that have international operations use LIFO for U.S. purposes but use FIFO for their foreign subsidiaries. 10. _______ Both U.S. GAAP and IFRS permit the use of the LIFO method to account for inventories. 11. _______ IFRS permits an entity to reverse inventory write-downs in certain situations, whereas U.S. GAAP does not. 12. _______ IFRS defines market as replacement cost subject to certain constraints. 13. _______ IFRS uses a ceiling to determine market. 14. _______ Similar to U.S. GAAP, certain agricultural products and mineral products can be reported at net realizable value using IFRS. 15. _______ IFRS records market in the lower-of-cost-or-market differently than U.S. GAAP.Explanation / Answer
1. True2. False3. False4. True5. True