| Types of Differences | Impairments | Intangible Assets | Goodwill | Leases |
|---|---|---|---|---|
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Based on function (cost of sales, administrative)
How do SEC registrants present expenses on the income statement?
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External Events and Internal Events
What are the two types of events that might indicate an asset is impaired?
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measured at cost and assessed as finite or indefinite
Purchased intangibles are initially measured how and useful life is assessed?
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Indefinite-lived intangibles and goodwill are subject to impairment testing at least annually.
Which intangible assets are subject to annual impairment testing?
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operating lease
Any lease not classified as a finance lease is a(n)_______.
|
|
SEC
In US GAAP whose rules do public companies have to follow?
|
Carrying Value and undiscounted future cash flows
To determine whether an asset has been impaired, under US GAAP, these two things are compared:
|
Identifiable, nonmonetary asset without physical substance held for use in the production of goods or services
IAS 38 defines an intangible asset as
|
False, As an indefinite-lived intangible asset, goodwill is not amortized
Goodwill is amortized true or false
|
US GAAP, IFRS
Leveraged leases on or after the effective date of ASC 842, however leases commenced prior are grandfathered in under _______ Leveraged leases are not permitted under _____
|
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Statement of financial position, statement of profit and loss (income statement) and statement of comprehensive income (either a single continuous statement or two consecutive statements)
Similarities between US GAAP and IFRS in respect to the components of a complete set of financial statements include what?
|
US GAAP uses Fair Value, IFRS uses Recoverable Amount (almost never the same amount)
What causes a difference in the amount of impairment loss recognized between GAAP and IFRS?
|
Accumulate costs for each development project as if it were a separate work in progress.
Because the costs of some, but of all, development projects will be deferred as assets, it is necessary to?
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The excess of the consideration transferred in a business acquisition by the acquiring firm, plus any noncontrolling interest, over the fair value of net assets acquired
Goodwill is measured as
|
Expense, Income
An operating lease, lease payments are recognized by the lessee as a(n) ________ and by the lessor as _________.
|
|
US GAAP- notes in the financial statement / IFRS – presented as separate statement
Where does U.S. GAAP show changes in Shareholders Equity and where does IFRS?
|
Income
A reversal of impairment loss causes an increase in what?
|
In-process research and development
A special situation arises with respect to development costs that have been incurred by the acquire prior to the business combination, often called?
|
Cash-generating Unit (CGU), Reporting unit
Impairment is tested at the level of the _________ US GAAP test at the level of ____________
|
Right of use assets and lease responsibilities
Both US GAAP and IFRS require for leases to recognize _______________ and __________ in their balance statements.
|
|
1) represents a separate major line of business or geographical area of operations
2) Is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or 3) is a subsidiary acquired exclusively with a view to resale
Under IFRS discontinued operations classification is for components that have been disposed of or are classified for held for sale, and the component….
|
IFRS income and Retained Earnings would have be lowered by the same amount to reconcile GAAP
If a previously recognized impairment loss is reversed under IFRS, how would it be reconciled in GAAP?
|
The technical feasibility of completing the intangible asset so that it will be available for use or sale
Its intention to complete the intangible asset and use or sell it Its ability to use or sell the intangible asset How the intangible asset will generate probable future economic benefits. Among other things, the enterprise should demonstrate the existence of a market for the output of the intangible asset or the existence of the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset The availability of adequate technical, financial, and other resources to complete the development and to use or sell the intangible asset Its ability to reliable measure the expenditure attributable to the intangible asset during its development
Development expenditures, in contrast, are recognized as an intangible asset when an enterprise can demonstrate one of the following:
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bottom-up test
U.S. GAAP requires only a ___________ and only for that goodwill associated with those assets that are being reviewed for impairment.
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U.S. GAAP requires immediate recognition of the loss regardless of its source.
If the fair value of property at time of the sale–leaseback is less than its carrying amount, IAS 17 allows recognition of a loss only if_____________.
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