A US Company Has Many Foreign Subsidiaries and Wants to Convert

question 45

Multiple Choice

A U.S. company has many foreign subsidiaries and wants to convert its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the opening IFRS balance sheet?

• A) Measuring asset impairment.
• B) Classifying extraordinary items.
• C) Sale and leaseback gain recognition.
• D) Measuring salaries expense.
• E) Prior service cost recognition for pension amendments.

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Definitions:

Heptane

A straight-chain alkane with seven carbon atoms in its molecule, often used as a nonpolar solvent in laboratories.

Moles

A unit of measurement used in chemistry to express amounts of a chemical substance, defined as containing exactly 6.02214076×10^23 particles.

Newman Projection

A method of visualizing the conformation of a chemical compound by projecting its bond structure along a chosen bond axis.

Anti Conformation

A spatial arrangement in molecules where substituents on adjacent carbons are positioned as far apart as possible, reducing steric strain and often seen in Newman projections.