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Viefleur [7K]
3 years ago
13

A short-term lease: Multiple Choice Must be accounted for by the short-cut method if using U.S. GAAP. Is defined as having a val

ue of $10,000 or less. Is defined as having a lease term of fifteen months or less. Not required to be accounted for by the short-cut method if using IFRS.
Business
1 answer:
Sauron [17]3 years ago
6 0

Answer: Not required to be accounted for by the short-cut method if using IFRS.

Explanation:

A Short term Lease is one where a person or entity is granted the legal use of a space for a small period of time which is a year or less.

In calculating this, the Sixteenth International Financial Reporting Standards, IFRS 16, states that a Short Term lease may be charged directly to a Profit and Loss account.

It does not approve the use of the Shortcut method which is a qualitative measure of analysis that is ONLY approved under the US Accounting system (GAAP) and even then is not widely used.

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15 points and brainliest!!! Please help... Suzanne is an archaeologist working on the uncovered site of an old
KATRIN_1 [288]

Answer:

A Master's Degree In Anthropology

5 0
2 years ago
How physical assets valuation and development and research pose risk.<br>​
Alex Ar [27]

Answer:

The differences between US GAAP and IFRS pose an extra cost because international corporations must prepare two separate accounting statements. But besides that, other potential risks include paying higher taxes than what the companies should pay int their home countries and the uncertainty generated by changing rules.

Not only do current tax rates affect potential investments, e.g. currently companies in the US pay relatively low corporate taxes (Tax Cuts and Jobs Act of 2017) but these benefits end on 2025. But also different methods for valuating physical assets and R&D costs can represent higher than expected taxes. E.g. depending on a company's needs, it may be beneficial to expense all R&D costs right away, or maybe it would be better to capitalize some of them after technical feasibility is achieved (IFRS).

The main advantage of having uniform rules (e.g. UCC) is that all the companies know exactly what to expect and how to act. Certainty decreases risk, and less risk reduces costs.

Explanation:

In the US, the vast majority of firms use US GAAP as their accounting method, but around the world the IFRS method is used.

Physical asset valuation is the process of determining the value of your physical assets including P, P & E, and also inventories.

  • When valuing inventories IFRS uses FIFO, while US GAAP allows FIFO, LIFO or weighted average costing methods. US GAAP also values inventory at lesser of cost or market value, while IFRS values inventory at lesser of cost or net realizable value.
  • US GAAP uses the cost method to determine the historic cost of an asset, while IFRS uses basically the same method but does not include all the costs of location of the assets (e.g. cost of removing or clearing a facility).
  • US GAAP recognizes non-monetary exchanges while IFRS doesn't.
  • IFRS also allows the cost of asset to be revalued, which can result in unrealized gains or losses. The US GAAP only considers historic costs.
  • There are also other minor differences regarding depreciation, disposals and impairment rules.

Research and development must be expensed right away under US GAAP, while IFRS basically requires the same, it allows some capitalization of development expenditures if certain criteria is met (technical feasibility is achieved).

7 0
2 years ago
A company borrows $50,000 by signing a $50,000, 8% note that requires six equal payments of (round to the nearest dollar) at the
elixir [45]

Answer:

An information is missing on this question but I found the complete details as shown below;

"A company borrows $50,000 by signing a $50,000, 8% note that requires six equal payments of

<em>10816</em> (round to the nearest dollar) at the end of each year. (The present value of an annuity of six

annual payments, discounted at 8% equals 4.6229.) "

Explanation:

An annuity payment is made in equal amounts for a specified period of time in this case 6 years.

Since the equal payments are made annually and you are given the Present value of the annuity as $50,000 & discount factor of 4.6229, divide the PV by the discount factor. The value of equal payments should be equivalent to the $<em>10816 ;</em>

<em>=50,000 / </em>4.6229

= 10815.7217

Next, round the answer to the nearest dollar;

When rounded to the nearest whole number it becomes $10,816.

<em />

8 0
3 years ago
On January 1, 2016, Elite Advertising was contracted to run a marketing campaign for Pharm King's new dieting pills. In addition
stepladder [879]

Answer:

A. $50,000

Explanation:

150,000 for a 3 year compaing  = 50,000 per year

<u>The contract has just started </u>and the information available doesn't meet the criteria.

We must remember that <u>accounting has a principle of conservatism</u> regarding revenues. Accrue revenue without proper grounds is not correct. We should recognize the 1/3 of the base fee which is earned and matched the accounting cycle.

8 0
3 years ago
What are the frist 10 amendments called
PSYCHO15rus [73]
<span>The first 10 amendments of the United States Constitution are called the "Bill of Rights," these amendments were ratified on December 15, 1791. </span>
8 0
3 years ago
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