Question

Component depreciation is: a. Required under U.S. GAAP b. Allowed, but not required, under IFRS c....

  1. Component depreciation is:

    a.

    Required under U.S. GAAP
    b.

    Allowed, but not required, under IFRS
    c.

    Not allowed under U.S. GAAP
    d.

    Required under IFRS for each component part of PPE that is significant to the overall cost of the item
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Component depreciation is:
Ans: d. Required under IFRS for each component part of PPE that is significant to the overall cost of the item
Explanation:- Component depreciation is required under IFRS for each component part of PPE. US GAAP does not require component depreciation but it is permitted under US GAAP but rarely used.

Feel free to ask any clarification, if required. Kindly provide feedback by thumbs up, if satisfied. It will be highly appreciated. Thank you.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Component depreciation is required under: A. both IFRS and U.S. GAAP. B. IFRS, but not U.S....
Component depreciation is required under: A. both IFRS and U.S. GAAP. B. IFRS, but not U.S. GAAP. C. U.S. GAAP, but not IFRS.
Would a company be more likely to report a contingent liability under U.S. GAAP or IFRS?...
Would a company be more likely to report a contingent liability under U.S. GAAP or IFRS? a. U.S. GAAP b. IFRS c. Equally likely. d. Contingent liabilities are not reported under IFRS.
IFRS U.S. GAAP 4. May use either cost model or revaluation model to a PPE class....
IFRS U.S. GAAP 4. May use either cost model or revaluation model to a PPE class. 4. Require cost model and prohibit revaluation model for PPE. 5. Each part of an item of PPE with a cost that is significant in relation to the total cost shall be depreciated separately 5. Take a ‘holistic view’ of PPE depreciation instead of the IFRS ‘component’ approach. Using the chart above: Discuss which accounting treatment (IFRS, U.S. GAAP, or another new treatment from...
1. The Balance sheet and Income statement per U.S. GAAP and IFRS need to provide comparative...
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...
Please answer True or False: 1. An accelerated depreciation method is appropriate when the asset's economic...
Please answer True or False: 1. An accelerated depreciation method is appropriate when the asset's economic usefulness is the same each year. 2. IFRS permits the same depreciation methods as U.S. GAAP, with the exception of the units-of-production method, which is not allowed under IFRS. 3. As with U.S. GAAP, IFRS requires that both direct and indirect costs in self-constructed assets be capitalized.
products, processes, and/or ideas that may provide future value. Under U.S. GAAP, all R&D costs are...
products, processes, and/or ideas that may provide future value. Under U.S. GAAP, all R&D costs are expensed in the year incurred (no asset recorded). For example, if a company spent $1,000,000 cash on R&D in 2017, U.S. GAAP would require the following journal entry: R&D Expense 1,000,000 Cash 1,000,000 Thus, the $1,000,000 expenditure would result in a $1,000,000 (pre-tax) reduction in income for 2017. Under IFRS, research costs are expensed (similar to U.S. GAAP). However, development costs are capitalized (recorded...
(a) Does U.S. GAAP require that companies disclose their accounting policies? Explain. (b) Does IFRS require...
(a) Does U.S. GAAP require that companies disclose their accounting policies? Explain. (b) Does IFRS require that companies disclose their accounting policies? Explain.
With regard to reporting contingent liabilities on a balance sheet, financial statements prepared under International Financial...
With regard to reporting contingent liabilities on a balance sheet, financial statements prepared under International Financial Reporting Standards (IFRS) will: Multiple Choice a) Have fewer contingent liabilities accrued than under U.S. GAAP because the IFRS guideline for "probable" is a higher percentage than the U.S. GAAP guideline for "probable". b) Have more contingent liabilities accrued than under U.S. GAAP because IFRS requires all lawsuits, environmental problems, and product warranties that are reasonably estimable to be accrued while U.S. GAAP requires...
Which of the following statements about International Financial Reporting Standards (IFRS) is NOT true? A. IFRS...
Which of the following statements about International Financial Reporting Standards (IFRS) is NOT true? A. IFRS sets out broad and general principles that accountants should follow when preparing financial statements. B. IFRS offers simplicity but also possibly more leeway for accounting malpractice than does GAAP. C. In 2008, the Securities and Exchange Commission (SEC) announced its plan to convert U.S. companies from GAAP to IFRS. D. IFRS leaves LESS room for discretion than GAAP does. 2. Rogue Corp. has sales...
Surat Limited paid cash to acquire an aircraft on January 1, 2017, at a cost of...
Surat Limited paid cash to acquire an aircraft on January 1, 2017, at a cost of 31,630,000 rupees. The aircraft has an estimated useful life of 50 years and no salvage value. The company has determined that the aircraft is composed of three significant components with the following original costs (in rupees) and estimated useful lives: Component Cost Useful Life Fuselage 11,300,000 50 years Engines 15,200,000 40 years Interior 5,130,000 30 years 31,630,000 The U.S. parent of Surat does not...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT