AC 302 WEEK 10 Multiple Choice Question

AC 302 WEEK 10 Multiple Choice Question 
IFRS Multiple Choice Question 06
 
 	Correct.
 	 
If Benjamin Company and Iris, Inc. are similar companies in every regard, except Benjamin Company uses IFRS while Iris, Inc. uses U.S. GAAP, which of the following is true?

 
 
Benjamin Company is not required by IFRS to issue interim statements.
 
All of the above are true.
 
Iris, Inc. is required to issue interim statements every 6 months.
 
Benjamin Company need not recognize post-balance sheet events.
IFRS Multiple Choice Question 07
 
 	Correct.
 	 
Benjamin Company uses IFRS, while Iris, Inc. uses U.S. GAAP, for their external financial reporting. On January 16, 2015, both companies settled lawsuits relating to industrial accidents that occurred in 2013. Benjamin Company paid $550,000 and Iris, Inc. paid $230,000. Assuming that no accrual had been previously made, what amount of loss should be reported on the income statement for the year ended December 31, 2014 for each company?
	Benjamin Company		Iris, Inc.

 
 
       $550,000		$-0-

 
       $-0-		$-0-

 
       $550,000		$230,000

 
       $-0-		$230,000


IFRS Multiple Choice Question 08
 
 	Correct.
 	 
IFRS requires which of the following disclosures regarding related parties?
I.	The name of the related party.
II.	The amount and terms of the outstanding balance.
III.	Doubtful amounts related to the outstanding balance.

 
 
I, II, and III.
 
I and II.
 
I and III.
 
II and III.


IFRS Multiple Choice Question 09
 
 	Correct.
 	 
Nicole, Inc. uses IFRS for its external financial reporting. During 2013, an employee of the company was injured in the factory. Discussions with corporate attorneys resulted in a determination that the company would be required to pay between $1,500,000 and $3,000,000 to settle the injury claim. Nicole, Inc. accrued a contingent liability on December 31, 2013 for $1,500,000. On February 4, 2014, Nicole, Inc. settled the lawsuit for $3,300,000. What amount of loss should be reported on the income statement for the year ended December 31, 2014 for Nicole, Inc. related to this lawsuit?

 
 
$1,500,000
 
$3,300,000
 
$300,000.
 
$1,800,000



IFRS Multiple Choice Question 10
 
 	Correct.
 	 
Identifiable assets for the 4 industry segments of Brittle Company are as follows:
Candy	$120,000
Stix	$240,000
Chips	$980,000
Gum	$45,000

Brittle Company uses IFRS for its external financial reporting. Using only the identifiable assets test, which of the segments are reportable?

 
 
Candy, Stix, and Chips only.
 
Under IFRS, all four segments must be reported.
 
Chips only.
 
Stix and Chips only.