Questions from Intermediate Accounting

Q: U.S. GAAP and IFRS differ in the classifications of

U.S. GAAP and IFRS differ in the classifications of dividends and interest on the statement of cash flows. U.S. GAAP requires firms to classify cash receipts from interest and dividends and cash payme...

Q: Currently, U.S. GAAP allows entities to present their

Currently, U.S. GAAP allows entities to present their operating cash flows either under the direct or the indirect method. 1. Briefly describe each method’s approach. 2. What is the primary advantag...

Q: Consider the Basis for Conclusions in IAS 16, Property, Plant

Consider the Basis for Conclusions in IAS 16, Property, Plant and Equipment (particularly paragraph BC25) as well as the legacy U.K. standard on tangible fixed assets Financial Reporting Standard (FRS...

Q: Under certain circumstances, IFRS allows some intangible assets to be revalued

Under certain circumstances, IFRS allows some intangible assets to be revalued, whereas U.S. GAAP does not allow revaluation. Read the Basis for Conclusions in IAS 38, Intangible Assets, particularly...

Q: The employees of Wilson Lumber are allowed to take 5 sick days

The employees of Wilson Lumber are allowed to take 5 sick days per year. The sick days vest and are paid at the current rate of $150 per day. Wilson employs 70 employees. Employees took 80% of the sic...

Q: You are reviewing the financial statements of Trident Incorporated and observed that

You are reviewing the financial statements of Trident Incorporated and observed that Trident entered into a significant operating lease for office equipment at the end of the current year. Because of...

Q: Eli Lilly and Company, a global pharmaceutical company, offers defined

Eli Lilly and Company, a global pharmaceutical company, offers defined-benefit plans to its employees. The following table presents select data about Eli Lilly’s defined-benefits pen...

Q: Pfizer Inc., a global pharmaceutical company, offers several different types

Pfizer Inc., a global pharmaceutical company, offers several different types of stock-based compensation to its employees. Pfizer reports under U.S. GAAP. Use the disclosures provided in Exhibit 19.3...

Q: You are asked to analyze NCR Corporation’s EPS. NCR is a

You are asked to analyze NCR Corporation’s EPS. NCR is a business solution company manufacturing automated teller machines (ATMs), point of sale (POS) terminals and devices, and self...

Q: The 2013 financial statements of Lexmark International, Inc., a leading

The 2013 financial statements of Lexmark International, Inc., a leading developer, manufacturer, and supplier of printing, imaging, and device management, indicated that it reported an accounting poli...