[HopefulCPA0601]

Let’s a full list going here as a quick reference guide for everyone studying. So far from the FAR discussion forum we have the following:

#1: Extraordinary items – GAAP/Yes and IFRS/Not allowed

#2: IFRS does NOT allow the completed contract method.

#3: Inventory: Differences between GAAP and IFRS

1. GAAP can choose between LIFO and FIFO…………………………….. IFRS LIFO is prohibited

2. GAAP inventory is carried at lower of cost or replacement cost………IFRS it is lower of cost or NRV

3. GAAP inventory write-downs cannot be reversed. ….IFRS if impairments no longer exist, the inventory can be written up back up.

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[HopefulCPA0601]

Change in entity:

IFRS: not allowed

GAAP: restate previous FS

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[HopefulCPA0601]

Change in entity:

IFRS: not allowed

GAAP: restate previous FS

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[HopefulCPA0601]

Notes to FS:

IFRS:

– requires specific statement of compliance with IFRS

– Summary if sig acctg policy: disclosure of estimates and judgments made in process of applying accounting policies

GAAP:

– no statement of compliance requirements

– Summary of sig acctg policy: need disclosure of significant estimate, but NOT judgments

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[HopefulCPA0601]

Notes to FS:

IFRS:

– requires specific statement of compliance with IFRS

– Summary if sig acctg policy: disclosure of estimates and judgments made in process of applying accounting policies

GAAP:

– no statement of compliance requirements

– Summary of sig acctg policy: need disclosure of significant estimate, but NOT judgments

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[HopefulCPA0601]

R&D:

IFRS – research expensed, development capitalized (if certain criteria met)

GAAP – research and development expensed

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[HopefulCPA0601]

R&D:

IFRS – research expensed, development capitalized (if certain criteria met)

GAAP – research and development expensed

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[jrosen92770]

IFRS Bond Issues costs are not capitalized (deducted from carrying value of bond). Under GAAP, they are capitalized.

BEC – 5/26/2013 75

REG – 8/31/2013 82

AUD – 11/24/2013 74, 2/9/2014 92

FAR – 5/25/2014

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[jrosen92770]

IFRS Bond Issues costs are not capitalized (deducted from carrying value of bond). Under GAAP, they are capitalized.

BEC – 5/26/2013 75

REG – 8/31/2013 82

AUD – 11/24/2013 74, 2/9/2014 92

FAR – 5/25/2014

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[HopefulCPA0601]

IFRS Bond Issues costs are not capitalized (deducted from carrying value of bond). Under GAAP, they are capitalized.

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[HopefulCPA0601]

IFRS Bond Issues costs are not capitalized (deducted from carrying value of bond). Under GAAP, they are capitalized.

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[Kenada]

Intangile Assets

1. GAAP – R&D costs must be expense …. IFRS Research costs must be expense. Development costs may be capitalized if 6 Criteria are met

2. GAAP Reported using Cost Model ….. IFRS Reported using either Cost model or revaluation model.

3. GAAP Impairment loss may not be reversed …. IFRS Impairment loss may be reversed.

CA Candidate. 05/27/2014 ~ 786/110
I am done!!

[Kenada]

Intangile Assets

1. GAAP – R&D costs must be expense …. IFRS Research costs must be expense. Development costs may be capitalized if 6 Criteria are met

2. GAAP Reported using Cost Model ….. IFRS Reported using either Cost model or revaluation model.

3. GAAP Impairment loss may not be reversed …. IFRS Impairment loss may be reversed.

CA Candidate. 05/27/2014 ~ 786/110
I am done!!

[HopefulCPA0601]

Impairtment of Intangibles Testing (other than goodwill):

GAAP: 2 step test

1) Sum undiscounted cf – carry value = if impaired

2a) IF Held for use –> FV – carry value = impairment amount

2b) IF Held of disposal –> FV – carry value + disposal cost = impairment amount

IFRS: 1 step test

Carry value – recoverable amount = impairment

* recoverable amount is greater of a) value in use (PV of future cash flow) OR b) FV – cost to sell

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[HopefulCPA0601]

Impairtment of Intangibles Testing (other than goodwill):

GAAP: 2 step test

1) Sum undiscounted cf – carry value = if impaired

2a) IF Held for use –> FV – carry value = impairment amount

2b) IF Held of disposal –> FV – carry value + disposal cost = impairment amount

IFRS: 1 step test

Carry value – recoverable amount = impairment

* recoverable amount is greater of a) value in use (PV of future cash flow) OR b) FV – cost to sell

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[jrosen92770]

Noncontrolling interest and Goodwill maybe computed by partial or full goodwill under IFRS; GAAP only Full Goodwill Method.

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[Author]

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