Currency Translation – Financial Statements & IFRS
These accounting chapters discuss Currency Translation – Financial Statements & IFRS, currency swap and transactions with a global and analytical approach.
The American Association of Accountants was established in :
1886
1887 – Correct
1888
1889
none of the answers apply
Prior to the ____ no laws or regulations obliged corporations to have their financial statements audited.
1930’s – Correct
1880’s
1900’s
1890s
none of the answers apply
Weak _______ societies maintain a more relaxed attitude in which practice counts more than principles.
Power distance
Individualism versus Collectivism
Masculinity versus Femininity
Uncertainty Avoidance – Correct
None of the answers apply
Which of the following contains “A society’s position on this dimension is reflected in whether people’s self-image is defined in terms of “I” or “we.”
Power distance
Individualism versus Collectivism – Correct
Masculinity versus Femininity
Uncertainty Avoidance
None of the answers apply
Under IFRS which inventory method is prohibited.
FIFO
Weighted average
LIFO – Correct
Lower of cost or net realizable value
None of the answers apply
The American Association of Accountants was established in :
1886
1887 – Correct
1888
1889
none of the answers apply
Prior to the ____ no laws or regulations obliged corporations to have their financial statements audited.
1930’s – Correct
1880’s
1900’s
1890s
none of the answers apply
Weak _______ societies maintain a more relaxed attitude in which practice counts more than principles.
Power distance
Individualism versus Collectivism
Masculinity versus Femininity
Uncertainty Avoidance – Correct
None of the answers apply
What system had a positive influence on accounting practices
Capitalism – Correct
civil law system
code law system
none of the answers apply
The Securities Act of 1933 required financial statements be audited.
True
False – Correct
What state required have a college degree to be a CPA in 1929?
New Jersey
New York – Correct
Maryland
California
none of the answers apply
What release defined and allowed depreciation to be used as a deduction from gross income?
IRS Bulletin F – Correct
The Securities Act of 1933
Revenue Act of 1918
16th Amendment
none of the answers apply
The IASB issued the revised Conceptual Framework for Financial Reporting on 29 March 2018. The revised Conceptual Framework is effective __________ for the IASB and the IFRS Interpretations Committee.
in 2019
from 2020
in 2021
immediately – Correct
none of the answers apply
Which of the following items would not appear on the Income Statement prepared using IFRS?
Gross Profit
Depreciation and amortization
Discontinued operations
All items would appear on the Income Statement when using IFRS – Correct
Which of the following items would not appear on the Income Statement prepared using IFRS?
Gross Profit
Depreciation and amortization
Accounts Receivable – Correct
All items would appear on the Income Statement when using IFRS
IFRS for SME’s introduced _______ which is the exercise of caution when making judgments under conditions of uncertainty.
Balance between benefit and cost, undue cost or effort
Verifiability
Timeliness
Prudence – Correct
SSim-Tech, a British company, is getting ready to consolidate a foreign subsidiary financial statements, which are in Euros. The functional currency to be used is
Euro
Pound Sterling – Correct
Italian Euro
US dollar
None of these apply
Under IFRS which pronouncement covers currency translations?
IFRS 21
IAS 21 – Correct
IFRS 9
IAS 9
None of these apply
A currency transaction that involves immediate delivery is referred to as a:
Spot market – Correct
Forward market
Foreign exchange swap
Cross currency swap
None of the answers apply
SSim-Tech, a British company, is getting ready to consolidate a foreign subsidiary financial statements, which are in Euros. The first step in performing the consolidation currency translations is to
determine the subsidiary’s functional currency
to determine if IFRS 9 applies.
determine the parents functional currency. – Correct
record any translation gains or losses.
None of these apply
SSim-Tech, a British company, is getting ready to consolidate a foreign subsidiary financial statements, which are in Euros. The functional currency to be used is
Euro
Pound Sterling – Correct
Italian Euro
US dollar
None of these apply
Under IFRS which pronouncement covers currency translations?
IFRS 21
IAS 21 – Correct
IFRS 9
IAS 9
None of these apply
IFRS for SME’s introduced _______ which is the exercise of caution when making judgments under conditions of uncertainty.
Balance between benefit and cost, undue cost or effort
Verifiability
Timeliness
Prudence – Correct
A currency transaction that involves immediate delivery is referred to as a:
Spot market – Correct
Forward market
Foreign exchange swap
Cross currency swap
None of the answers apply
Short Answer - Free Response Questions
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Questions
Provide an example of a licensing arrangement and discuss the importance of this activity.
In 1913 the 16th Amendment required that taxes were to be levied on all citizens of the United States, including those living abroad. Is this policy still relevant today? Discuss why imposing taxes on income earned outside the United States is a good or bad thing.
Discuss the Power Distance Index and its importance.
Describe civil / code law characteristics.
Why is transfer pricing a subject for tax authorities? Can income be manipulated through use of transfer prices? If so provide an example.
What is meant by recognition and derecognition in the IASB Framework?
What is codification? Describe its purpose.
Describe the difference between a foreign currency transaction and foreign currency translation. Give examples of each.
Currency Translation – Financial Statements
Dear student if you need help with answers/explanations to the questions above, kindly contact us and our tutors will help you explain and solve your questions in 15 minutes. You could message us on Facebook or click here to send us a request. Thank you for visiting us!