INTERNATIONAL ACCOUNTING
5th Edition
ISBN: 9781260918281
Author: Doupnik
Publisher: MCG
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Chapter 3, Problem 1Q
To determine
Explain how harmonization is diverse from convergence.
Expert Solution & Answer
Answer to Problem 1Q
Harmonization states that accounting practices can be different across countries, but there should not be any conflict between the standards. Convergence, on the other hand aims at integrating all accounting standards into one and every country following the same accounting standards.
Explanation of Solution
Harmonization aims at reducing options while maintaining flexibility in accounting procedures. Every country has its own regulation with respect to accounting practices. Harmonization permits countries to follow different rules in accounting practices provided these rules do not conflict each other. For instance, companies could use different computation methods in valuing their books, provided appropriate disclosures were made.
Convergence on the contrary, aims at having universally accepted accounting standards that every country flows so as to eliminate disparities in financial statements and other accounting practices.
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Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (Use MACRS Table 1 and
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Date Placed in
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Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (Use MACRS Table 1 and
Table 2.)
Date Placed in
Asset
Machinery
Service
October 25
Original
Basis
$ 120,000
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February 3
47,500
Used delivery truck*
August 17
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60,500
212,500
The delivery truck is not a luxury automobile.
Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.
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Chapter 3 Solutions
INTERNATIONAL ACCOUNTING
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Prob. 3QCh. 3 - Prob. 4QCh. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - 8. Are there any major accounting issues that have...Ch. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - Prob. 11QCh. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - What are the conditions to be satisfied if a firm...Ch. 3 - Prob. 15QCh. 3 - Prob. 16QCh. 3 - Prob. 17QCh. 3 - Prob. 18QCh. 3 - Prob. 2EPCh. 3 - Prob. 3EPCh. 3 - Prob. 4EPCh. 3 - Prob. 5EPCh. 3 - 7. The appendix to this chapter describes what is...Ch. 3 - In its 2003 annual report, Honda Motor Company LTD...Ch. 3 - Prob. 10EPCh. 3 - Prob. 11EPCh. 3 - 14. Recently the IASB revised IFRS...Ch. 3 - Prob. 13EPCh. 3 - Prob. 14EPCh. 3 - Prob. 15EPCh. 3 - Prob. 1C
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