True/False
1. Due to the broader range of options available under GAAP compared to IFRS, note disclosures are
generally more expansive under GAAP than under IFRS.
2. IFRS requires companies to prepare interim reports on a quarterly basis.
3. IFRS requires segment reporting, and uses the management approach to identify reportable segments.
4. IFRS requires companies to disclose transactions with related parties, including the name of the related
party and any doubtful amounts related to outstanding balances for the related party.
5. Neither GAAP nor IFRS requires interim reports.
Multiple Choice
6. If Benjamin Company and Iris, Inc. are similar companies in every regard, except
Benjamin Company uses IFRS while Iris, Inc. uses GAAP, which of the following is true?
a. Iris, Inc. is required to issue interim statements every 6 months.
b. Benjamin Company need not recognize post-balance sheet events.
c. Benjamin Company is not required by IFRS to issue interim statements.
d. All of these choices are true.
7. Benjamin Company uses IFRS, while Iris, Inc. uses GAAP, for their external
financial reporting. On January 16, 2021, both companies settled lawsuits relating to
industrial accidents that occurred in 2019. Benjamin Company paid $550,000 and Iris, Inc.
paid $230,000. Assuming that no accrual had been previously made, what amount of loss
should be reported on the income statement for the year ended December 31, 2021 for
each company?
Benjamin Company Iris, Inc.
a. $-0- $-0-
b. $550,000 $230,000
c. $-0- $230,000
d. $550,000 $-0-
8. IFRS requires which of the following disclosures regarding related parties?
I. The name of the related party.
II. The amount and terms of the outstanding balance.
III. Doubtful amounts related to the outstanding balance.
a. I, II, and III.
b. I and II.
c. I and III.
d. II and III.