Evaluation of whether an asset is impaired

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Reference no: EM135625

Several differences between IFRS and U. S. GAAP relate to when it is recognized.

How it is recognized.

On 1st January, 2012, Race Corp. acquired 70 percent of the voting common stock of Gallow Inc. In the year, Race sold to Gallow for $250,000 goods which cost $220,000. Gallow still owned 20 percent of the goods at year-end. Gallow's reported remaining income was $316,000, and Race's net income was $708,000. Race decided to use the equity technique to account for this investment. What was the non-controlling interest's share of consolidated net income?

$99,400.

$28,400.

$34,400.

$120,400.

Belsen purchased inventory on 1st December, 2013. Payment of 200,000 stickles was to be made in sixty days. Also on 1st December, Belsen signed a contract to purchase $200,000 in sixty days. The spot rate was $1 = .35714, and the 60-day forward rate was $1 = $.38462. On 31st December, the spot rate was $1 = .34483 and the 30-day forward rate was $1 = .38168. Consider an annual interest rate of 12 percent and a fair value hedge. The current value for one month at 12% is .9901.

In the journal entry to record the establishment of a forward exchange contract, at what amount could the Forward Contract account be recorded on 1st December?

What of the subsequent is not a significant difference between IFRS and U. S. GAAP related to recognition and measurement of assets?

Difference in the evaluation of whether an asset is impaired.

Acceptable use of LIFO under U. S. GAAP, but not IFRS.

Reversal of inventory write-downs allowed under IFRS, but not U. S. GAAP.

Sequent reversal of impairment losses allowed under IFRS, mainly for U. S. GAAP.

Which of the subsequent is not a framework for the development of accounting systems internationally?

Cultural Demonstrations.

Institutional Consequences.

Accounting Values.

Accounting Systems.

Reference no: EM135625

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