IFRS Uses the Idea of a Disposal Group, a Group

question 81

Multiple Choice

IFRS uses the idea of a disposal group, a group of assets and directly associated liabilities that a firm will dispose of as a group in a single transaction.The disposal group notion of IFRS envisions a larger unit than the component notion of U.S.GAAP.In the year that a firm decides to sell or otherwise dispose of a unit that qualifies as a discontinued operation, it aggregates the assets and liabilities of that unit on the balance sheet into four groups. Which of the following is not one of the groups?

• A)current assets
• B)noncurrent assets
• C)current liabilities
• D)noncurrent liabilities
• E)contingent liabilities

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Definitions:

Foreign Exchange Rate

The worth of one currency in relation to another for conversion purposes, establishing the rate at which one currency can be exchanged for another.

Currency Transaction

A financial transaction that involves the exchange of one currency for another, either at a bank, exchange bureau, or as part of a larger financial transaction.

Historical Exchange Rate

The rate at which one currency was exchanged for another in the past, used for comparison or accounting purposes.

International Conversion Rate

The international conversion rate is the exchange rate at which one currency can be converted into another for international transactions.