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Study Session 6: Financial Reporting and Analysis: An Introduction

#47 June 2015 Mock AM

Hello,

I think the both B and C are answers to number 47. The Exam Solution shows C. Does anyone know why its not B? I checked my materials, and it seems B is listed as what the auditor should also state.

[question removed by admin]

IFRS lost recovery

Hello,

I’m reviewing LOS 30.h and am not certain about lost recovery under IFRS. Let’s assume an asset was brought 3 years ago. During the first year, write down due to impairments was $10,000. The write down was $15,000 in the second year. In year 3, the fair value minus selling costs is $20,000 more than the carrying value. That means the write up in the third year would be $20,000, or would it be $15,000?

Thanks for your helps

Complex structure

Hello,

Would callable bonds make it a complex structure, or is that not enough?

Thanks

Diluted EPS

Hello,

If I was to compute diluted EPS with convertible bond, warrants, convertible preferred stocks, and 3 for 1 stock split in November, should the shares of convertible bond, warrants, and convertible preferred stocks all be multiplied by 3 in the denominator?

Thanks

Difference between IFRS and GAAP

I’ve seen a lot of posts recently asking about the differences between IFRS and GAAP and how to remember which is which, and which one to use on the exam. 

Yes–there are some differences between IFRS and GAAP.  But they’re 95% the same.  Compared to the similarities, the differences are few and you have to dig pretty deep to get to them. 

Financing/Investing

Which of the following is the most likely classification for a clothing manufacturer borrowing funds to purchase raw material?

  1. Operating activity

  2. Investing activity

  3. Financing activity

Answer: C

Borrowing of funds is not part of the day-to-day activities for a clothing manufacturer. Hence, it is classified as a financing activity.

FRA

Do, we need to remember what  SEC filing forms are for?

Accounting Question

Information regarding material events and uncertainties is most likely found in:

A)Management Discussion & Analysis.

B)Supplementary schedules.

C)Financial statement footnotes.

Answer: A

If you look at contigent liabilties should’nt the answer be c

Ledger/General Ledger

What is the difference a ledger and a general ledger??

IFRS V/S GAAP

Hey all ,

Does anyone have a pdf or a link to a site which has listed down all the differences between ifrs and the gaap ?

I am freaking out currently have 12 more readings to do and bearly remember anything !!! this IFRSV/SGAAP thing if anyone has , would help me out immensly !!!


Panicking and thanking ,

HedgeFudge