A. For an asset, derecognition normally occurs when the entity loses control of all or part of the recognised asset B. For a liability, derecognition normally occurs when the entity no longer has a present obligation for all or part of the recognised liability C. Derecognition is the removal of all or part of a recognised asset or liability from an entity's statement of financial position OD. All of the above

A. For an asset, derecognition normally occurs when the entity loses control of all or part of the recognised asset B. For a liability, derecognition normally occurs when the entity no longer has a present obligation for all or part of the recognised liability C. Derecognition is the removal of all or part of a recognised asset or liability from an entity's statement of financial position OD. All of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume that a business is headed for certain bankruptcy and it is evident that its liabilities greatly exceed its assets. Which principle would be violated if its financial statements wereprepared using standard U.S. GAAP?a. Entity assumptionb. Continuity assumptionc. Historical cost principled. Stable-monetary-unit assumption
Pursuant to the conceptual framework, for an item to be characterised as a liability the definition of liabilities must be applicable to the transaction or event, and the recognition criteria should also be satisfied. Applying the definition of liabilities, there are three key components in the definition of ‘liability’, these being:1. There must be an expected future disposition of economic benefits to other entities.2. There must be a present obligation.3. A past transaction or other event must have created the obligation.Required:Take any two examples of liabilities and test if they meet all three requirements.
8.
In accordance with PAS 1, which of the following gains or losses from reclassification of financial assets need not be presented separately in the profit or loss section or the statement of profit or loss? A.None of these. B. Reclassification of financial assets out of the FVTOCI measurement category to FVTPL C. Reclassification of financial assets out of the FVTPL measurement category. D.Reclassification of financial assets out of the amortized cost measurement category to FVTPL
The term "provision" as it is used in IAS 37, is most closely related to what term in U.S. GAAP? O Contingent liability, where the outflow of resources is "remote." Contingent liability, where the outflow of resources is "probable." O Current liability, where the outflow is difficult to measure. Reserve for bad debt, where the amount recoverable is "uncertain."
Assets intended to be held and used for productive purposes may suffer from impairment in each of the following circumstances except O A change in the way the assets are used or physical change in the assets. O Asset costs incurred exceed the original amounts planned. Discounted expected future cash flows and interest charges are less than the carrying amount of the assets. O A significant adverse change in legal factors that might affect the assets' fair value.
The accrual of a contingent liability and the related loss should be recorded when the a. Loss resulting from a future event may be material in relation to income. b. Future event that gives rise to the liability is unusual in nature and nonrecurring. c. Amount of the loss resulting from the event is reasonably estimated and the occurrence of the loss is probable. d. Event that gives rise to the liability is unusual and its occurrence is probable.
All of the following are consequences of disposing a capital cost asset, EXCEPT: a. Recapture of CCA b. Terminal Loss c. Capital Gain d. Terminal Gain
The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. Required: Prepare a horizontal analysis for 2022 using 2021 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.) FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 Year Increase (Decrease) 2022 2021 Amount Net sales 18,600,000 $ 15,300,000 Cost of goods sold 13,280,400 6,885,000 Gross profit 5,319,600 8,415,000 Operating expenses 1,543,800 1,147,500 Depreciation expense 948,600 948,600 Inventory write-down 167,400 Loss (litigation) 1,450,800 321,300 Income before tax 1,209,000 5,997,600 409,200 1,943,100 Income tax expense Net income 799,800 $ 4,054,500 $
Which of the following is not a fundamental issue in accounting for property, plant and equipment? Impairment losses Determination of fair value Recognition of assets Determination carrying amounts
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Answer with explanation.