IFRS For SME’s, Cross Currency Swap, Currency Transaction – Financial Statements & IFRS
The key terms in these accounting chapters include IFRS For SME’s, Cross Currency Swap, Transaction, Currency Transaction, Spot Market – Financial Statements & 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
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
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Which of the following items would not appear on the Income Statement prepared using IFRS?
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
Dear student if you need help with answers/explanations to the questions below, 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!
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!