Which of the Following Statements Regarding Reporting Under GAAP and IFRS

question 106

Multiple Choice

Which of the following statements regarding reporting under GAAP and IFRS is not true:

• A)Both GAAP and IFRS define the initial asset value as historical cost for nearly all assets.
• B)The definition of an asset under GAAP and IFRS involves three basic criteria.
• C)Both GAAP and IFRS define the initial asset value as replacement value.
• D)The definition of a liability under GAAP and IFRS involves three basic criteria.
• E)After acquisition,one of two asset measurement systems is applied.

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Definitions:

Conflicting Duties

Situations where two or more obligations or responsibilities are at odds, creating a moral or practical dilemma.

Ethical Dilemmas

These are complex situations that often involve an apparent mental conflict between moral imperatives, where to obey one would result in transgressing another.

Moral Law

A set of universal rules and principles guiding ethical conduct, often believed to be innate or divinely instituted.

Means

Methods or ways to achieve an end.