CPA Financial Accounting and Reporting (FAR) : IFRS vs. GAAP
Study concepts, example questions & explanations for CPA Financial Accounting and Reporting (FAR)
All CPA Financial Accounting and Reporting (FAR) Resources
Example Questions
Example Question #1 : Ifrs Vs. Gaap
IFRS requires which revenue recognition method when the outcome of rendering services cannot be estimated reliably?
Cost recovery method
Installment sales method
Percentage of completion method
Completed contract method
Cost recovery method
IFRS requires that the cost recovery method be used with an outcome of rendering services is uncertain.
Example Question #10 : Financial Reporting Standards
Which of the following statements regarding research and development under IFRS is correct?
Under IFRS, research related costs are capitalized and development costs are expensed
Under IFRS, research and development related expenses are both capitalized
Under IFRS, research and development related expenses are both expensed
Under IFRS, research related costs are expensed and development costs are capitalized
Under IFRS, research related costs are expensed and development costs are capitalized
Under IFRS, research related costs are expensed and development costs are capitalized
Example Question #2 : Ifrs Vs. Gaap
Which of the following statements regarding the accounting for investment property under IFRS is correct?
None of the above
If the entity elects the fair value method, no depreciation expense will be taken.
Both of the above
Gains and losses from fair value adjustments on investment property are reported on the income statement.
Both of the above
Under IFRS, no depreciation expense is recorded under the fair value method. Also under IFRS, gains and losses from fair value adjustments on investment property are recorded on the income statement.
Example Question #3 : Ifrs Vs. Gaap
Which of the following statements regarding the accounting for investment property under IFRS is correct?
Both of these
Gains and losses from fair value adjustments on investment property are reported on the income statement.
None of these
If the entity elects the fair value method, no depreciation expense will be taken.
Both of these
Under IFRS, no depreciation expense is recorded under the fair value method. Also under IFRS, gains and losses from fair value adjustments on investment property are recorded on the income statement.
Example Question #4 : Ifrs Vs. Gaap
Under US GAAP, which of the following should be disclosed for for each reportable operating segment of an enterprise? A) Profit or loss B) Total Assets
B
Both
A
Neither
Both
Both of these items should be disclosed under US GAAP. Generally, more pieces of information should be disclosed than less.
Certified Tutor
Certified Tutor
All CPA Financial Accounting and Reporting (FAR) Resources
