Question

1. The Balance sheet and Income statement per U.S. GAAP and IFRS need to provide comparative information to the users of these financial statements. Per US GAAP, the Income statement needs to include:
a. 2 years of comparative data – Current Year and Previous Year
b. 3 years of comparative date – Current Year and 2 Previous Years
c. U.S. GAAP does not specify the number of periods to be presented; they just have to be comparative.

2. According to US GAAP, compensation of key employees is listed in the 10K
a. True
b. False

3. Management Discussion and Analysis section includes information about compensation of key executives and it is required per US GAAP.
a. True
b. False

4. IFRS allows Companies to reverse the value of Property plant and equipment from cost to market. As long as the company is consistent in the way it applies this revaluation, it should not raise any issues:
a. True
b. False

Answer 1

1.

Per US GAAP, the Income statement needs to include 3 years of comparative date – Current Year and 2 Previous Years.

Therefore, the correct answer is b.

2.

The given statement is True.

Information about executive compensation is provided on the 10K annual report.

3.

The given statement is False.

Management Discussion and Analysis section does not include information about compensation of key executives.

4.

The given statement is True.

IFRS allows to report property, plant, and equipment at revalued amounts.