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Question
Under IFRS, SPEs are consolidated when evidence indicates that the reporting company "controls" the SPE. Control is presumed if which of the following conditions exist?
I. The reporting entity performs activities on behalf of the SPE.
II. The SPE has decision-making powers over the activities of the reporting entity.
III. The reporting company has the right to obtain the majority of the benefits of the SPE activities.
IV. The reporting company retains the majority of the residual or ownership risks related to the SPE or its assets.
A. I and II only.
B. I, II, and III only.
C. III and IV only.
D. I, II, III, and IV.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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IFRS frequently
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B. permit only one accounting treatment for similar business transactions and events to promote comparability.
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D. follow a more generalized overview approach than do U.S. GAAP counterpart standards.
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B. consistency.
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B. comparable.
C. neutral.
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Increase in prepaid expenses: $14,000
Amortization of discount on bonds payable: $10,000
Decrease in accounts payable: $20,000
Increase in inventory: $21,000
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Which of the following correctly describes U.S. GAAP accounting for convertible bonds and the implication of that requirement?
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B. Total owners' equity increases $790,000 if the market value method of recording the conversion is used.
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Over the vesting period for employee stock options, current GAAP requires that the entire compensation expense be recognized
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550,000 shares of common stock were outstanding on January 1, 2011.
Bonds convertible into 50,000 shares of common stock were issued on July 1, 2011; the bonds have been determined to be dilutive.
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24,000 shares of common stock were purchased on December 1, 2011.
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B. Diluted earnings per share and basic earnings per share must both be shown on the income statement.
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D. The company must have participating preferred stock outstanding.
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Which of the following is not indicative of a complex capital structure?
A. Outstanding convertible bonds.
B. Outstanding convertible preferred stock.
C. Outstanding cumulative preferred stock.
D. Outstanding stock options.
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Assuming that the preferred stock is cumulative, and that there are no dividends in arrears, what is the maximum dividend that may be distributed to common shareholders at December 31, 2012?
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What is the owners' equity balance on December 31, 2012?
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What is the retained earnings balance on December 31, 2012?
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A. Its focus is on the firm's net assets.
B. It is the prevailing view of GAAP.
C. Its focus is on owners' equity.
D. Whether creditors or shareholders provided the firm's assets is irrelevant.
Q:
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Q:
SFAS No. 123 required companies to use the fair value approach when determining compensation expense pertaining to stock options.