Currency Translation – Financial Statements & IFRS

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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

1887Correct

1888

1889

none of the answers apply


Prior to the ____ no laws or regulations obliged corporations to have their financial statements audited.

1930’sCorrect

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 AvoidanceCorrect

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 CollectivismCorrect

Masculinity versus Femininity

Uncertainty Avoidance

None of the answers apply


Under IFRS which inventory method is prohibited.

FIFO

Weighted average

LIFOCorrect

Lower of cost or net realizable value

None of the answers apply


The American Association of Accountants was established in :

1886

1887Correct

1888

1889

none of the answers apply


Prior to the ____ no laws or regulations obliged corporations to have their financial statements audited.

1930’sCorrect

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 AvoidanceCorrect

None of the answers apply


What system had a positive influence on accounting practices

CapitalismCorrect

Socialism

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 YorkCorrect

Maryland

California

none of the answers apply


What release defined and allowed depreciation to be used as a deduction from gross income?

IRS Bulletin FCorrect

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

immediatelyCorrect

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 IFRSCorrect


Which of the following items would not appear on the Income Statement prepared using IFRS?

Gross Profit

Depreciation and amortization

Accounts ReceivableCorrect

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

PrudenceCorrect


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 SterlingCorrect

Italian Euro

US dollar

None of these apply


 

Under IFRS which pronouncement covers currency translations?

IFRS 21

IAS 21Correct

IFRS 9

IAS 9

None of these apply


A currency transaction that involves immediate delivery is referred to as a:

Spot marketCorrect

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 SterlingCorrect

Italian Euro

US dollar

None of these apply


Under IFRS which pronouncement covers currency translations?

IFRS 21

IAS 21Correct

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

PrudenceCorrect


A currency transaction that involves immediate delivery is referred to as a:

Spot marketCorrect

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!


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