Indicate whether each of the following describes an accounting treatment that is acceptable under IFRS, U.S. GAAP,
Question:
Indicate whether each of the following describes an accounting treatment that is acceptable under IFRS, U.S. GAAP, both, or neither by checking the appropriate box.
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Acceptable Under IFRS U.S. GAAP Both Neither • Bank overdrafts are netted against cash rather than being recognized as a liability when overdrafts are a normal part of cash management. • Uncertain legal obligations, but not constructive obligations, contingent upon a future event are recognized as liabilities when certain criteria are met. • A defined benefit pension liability is measured as the excess of the present value of the defined benefit obligation (PVDBO) over the fair value of plan assets (FVPA). Actuarial gains and losses in a defined benefit pension plan are amor- tized to net income over a period of time. • The compensation cost associated with graded-vesting stock options is amortized to ex pense on a straight-line basis over the vesting period. • The minimum amount recognized as compensation ex pense on a stock option plan is the compensation cost as measured at the grant date, even if a subsequent modification to the plan decreases the total compensation cost. • Deferred taxes are classified as current or noncurrent based on the classification of the related asset or liability. • A payment on a two-year operating lease is recorded in the operating section of the statement of cash flows. • Breakage revenue is recorded on a gift card liability. • Fair value gains from holding marketable equity securities are recorded in other comprehensive income (OCI).
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Related Book For
International Accounting
ISBN: 978-1260466539
5th edition
Authors: Timothy Doupnik, Mark Finn, Giorgio Gotti, Hector Perera
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