MCQ Notes Misc

Question 1

IFRS Intangibles

Assets and liabilities

Answer 1

Be EITHER separable (if it can be sold, licensed, exchanged…) or it must arise from legal or contractual rights

Assets:

Liabilities:
at FV unless 1. CF and 2. P+I

Question 2

IFRS Revaluation Model of intangibles

Answer 2

(1) Periodically revalued (not annually but min. every 3 yrs-5 yrs), and adjusted to their fair value, and (2) amortize in between revaluation dates

Question 3

Goodwill calculation

Answer 3

Consideration Given - Fair Value of NET ASSETS (A-L)

Question 4

Prototype

Process

Answer 4

Part of RandD

Question 5

R and D project > 3 yrs

Answer 5

expensed right away.

Only equipment that will be used for other can be depreciated

If equipment can be used for other stuff or general R and D etc… DEPRECIATE.

Question 6

CV of Patent (amortize)

Answer 6

same like CV of equipment that can be depreciated: Cost - A/D)

Question 7

• Non-interest bearing note due in 3 yr

- If Note is due within a year

Answer 7

• should be recorded as PV or discounted to PV.

- Note due within a yr, report at face

Question 8

Payroll tax expense,

Payroll tax liability

Answer 8

P tax expense: er fica 7%

P tax liability: er and ee fica 7% x 2 + ee wholding

Question 9

deferred Liab arising from depreciation

Answer 9

are noncurrent because they are related to LT Assets

Question 10

Net Payroll

Payroll tax expense vs EE

Answer 10

Net Payroll $20,000
Payroll tax expense $20k x 7% FICA
w/holding…. ???
Tax exp liab…ee ???

Question 11

Interest exp on self-constructed LT Assets

Answer 11

GAAP can be capitalize. Not IFRS

But up to a limit. Lower of actually spent…

Question 12

Notes issued in exch for services w no int rate

Answer 12

reported at fv of note, serv or goods, or pv of the note at fairest int rate.

As a result, note is reported at Face MINUS Disct calculated at IMPUTED INTEREst Rate.