Term
|
Definition
| replacement cost bounded by NRV (sell price - cost to sell) and NRV - normal profit margin |
|
|
Term
|
Definition
| NRV (sell price - cost to sell) |
|
|
Term
| gaap acceptable inventory methods |
|
Definition
| lifo, fifo, weighted average, specific identification |
|
|
Term
| ifrs acceptable inventory methods |
|
Definition
| fifo, weighted average, specific identification |
|
|
Term
| describe write downs and write ups in gaap |
|
Definition
| write downs of inventory to lower of cost or market create a new cost basis that cannot be reversed |
|
|
Term
| describe write downs and write ups in ifrs |
|
Definition
| previously recognized write downs may be reversed up to the amount of previous write down if reason for impairment no longer exists |
|
|
Term
| gaap requires expense of development costs except... |
|
Definition
| computer software developed for external use are capitalized once technological feasibility established |
|
|
Term
| ifrs and development costs |
|
Definition
| allows all development costs to be capitalized when technical AND economic (commercial) feasibility of a project can be demonstrated |
|
|
Term
| does gaap allow reclassifying ST loans as LT? when? |
|
Definition
| yes as long as the entity intends to refinance the loan on a long-term basis AND, prior to issuing the FS, the entity can demonstrate an ability to refinance the loan |
|
|
Term
| does ifrs allow reclassifying ST loans as LT? when |
|
Definition
| yes, only if before the BS date |
|
|
Term
| gaap and depreciation of asset components |
|
Definition
| allows depreciation of components, but this is not a common practice |
|
|
Term
| ifrs and depreciation of asset components |
|
Definition
| requires depreciation of components |
|
|
Term
| does ifrs allow revaluation of long-lived assets? what method? |
|
Definition
| yes, proportional method: (new value / BV) = %. (HC x %) - (depr exp x %) = new BV. |
|
|
Term
| does gaap allow revaluation of long-lived assets? what method? |
|
Definition
|
|
Term
| impairment of op assets, ifrs. when is "test" performed and what is it? |
|
Definition
| performed if impairment indicators exist. Loss = CV - recoverable amount (equal to higher of (FV - cost to sell) and (PV FCFs, including disposal value) |
|
|
Term
| impairment of op assets, gaap. when is the test done and what is it? |
|
Definition
| done yearly? 1] CV vs. Undisc FCFs. 2] CV - FV. |
|
|
Term
| does gaap allow revaluation of intangible assets? how? |
|
Definition
|
|
Term
| does ifrs allow revaluation of intangible assets? how? |
|
Definition
| fuck yes it does if there's an active market for the asset and it isn't goodwill. depreciate the asset for the year, compare new CV to FV. send it to revaluation surplus. |
|
|
Term
| how does gaap require convertible debt to be recorded? does it separate the debt and equity portions? |
|
Definition
| it may be separated, but it isn't required (most don't). debit cash @ FV * 101 (or whatev), debit/credit disc/prem, credit bp @ FV |
|
|
Term
| how does ifrs require convertible debt be recorded? does it separate the debt and equity portions? |
|
Definition
| a firm must separate the debt and equity portions. debit cash @ FV * 101, credit BP @ FV * other typical non convertible, Credit plug for APIC |
|
|
Term
| what is the process for impairing goodwill under gaap? |
|
Definition
1) CV (or BV of net A) vs. FV incl. Gwill
2) CVg (purch $ - [unit As - unit Ls]) vs. implied FVg |
|
|
Term
| what is the process of impairing goodwill under ifrs? |
|
Definition
| compare CV of cgu to Recoverable Amount (greater of (FV - cost to sell) and (PV of FCFs) |
|
|
Term
| how does gaap rule on DTAs? |
|
Definition
| requires recognition of full DTA, but valuation allowance reduces assets to the amount that is MORE LIKELY THAN NOT to be realized. |
|
|
Term
| how does ifrs rule on DTAs? |
|
Definition
| amounts are recognized only to the extent it is PROBABLE they will be realized |
|
|
Term
| does ifrs or gaap allow FS to be adjusted for a stock dividend declared after the BS date? |
|
Definition
|
|
Term
| describe gaap ruling on construction contracts |
|
Definition
| accounted for using the percentage of completion method (if certain criteria are met). otherwise, use completed contract method (no revs or exp or GP recognized til complete) |
|
|
Term
| describe ifrs ruling on construction contracts |
|
Definition
| accounted for using the percentage of completion method (if certain criteria are met). otherwise, revenue recognition limited to recoverable costs incurred (recognize rev and exp, but not GP til costs recovered) |
|
|
