Which of the Following Statements Regarding International Financial Reporting Standards

question 39

Multiple Choice

Which of the following statements regarding international financial reporting standards (IFRS) is false?

• A) The reporting of extraordinary items is prohibited.
• B) Property, plant, and equipment can be reported on the balance sheet at either fair value or historical cost.
• C)The last-in first-out inventory method is permitted.
• D)Inventory write-downs are permitteD.The last-in first-out inventory method is prohibited under IFRS.

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Definitions:

Noncash Assets

Assets that are not in the form of cash but can be converted into cash, such as investments, real estate, and inventory.

Book Value

The net value of an asset, calculated as the asset’s original cost minus depreciation, amortization, or impairment costs.

Fair Value

An estimate of the price at which an asset or liability could be bought or sold in a current transaction between willing parties.

Cash

Currency or coins that are used as a medium of exchange for transactions; also, readily available liquidity or assets.