The answers to all questions should be in your own English words. However, I expect you to refer to authoritative accounting and financial reporting literature (FASB - Accounting Standards Codification and IASB - Unaccompanied IFRS. For IASB pronouncements you may need to go to Murphy Library or other sources to read the accompaniments to IFRS. There are 3 copies of IFRS 2009 in on reserve at Murphy. Most of the information in this edition is still valid. When you refer to authoritative accounting and reporting literature, you must cite your references within your answers.
The first four questions are compulsory. Choose either question five (Business Combinations) or question six (Consolidations) as your fifth required question. …show more content…
There are 4 categories of financial assets under IFRS and 3 categories under ASC 825. Discuss the amount at which each category is initially recognized and how changes in the initially recognized amounts are reported in the balance sheet and in the statement of comprehensive income for each category. Include in your answer your opinion as to the appropriateness of each of these financial reporting treatments.
b. Consider IAS 39 in responding to this question. An entity controls a portfolio of loans. The entity seeks to remove (derecognize) the portfolio from its financial statements. IAS 39 includes a derecognition application chart in the application guidance. Propose to the entity's management how a transaction could be arranged to achieve derecognition of the portfolio in compliance with IAS 39.
Joint FASB/IASB Exposure Draft ED/2010/9 - Leases
ASC 840 - Leases