IFRS Require Which of the Following That Is Not Required

question 57

Multiple Choice

IFRS require which of the following that is not required by GAAP?

• A)Detachable warrants must be reported separately.
• B)Liabilities and equity valuation of a compound instrument must be combined and reported as a simple value.
• C)Convertible debt must contain a separate valuation for both the debt and the option.
• D)If an impairment loss increases, the amount must be reversed.

---

Definitions:

Deferred Tax Assets

Financial items on a company's balance sheet that reduce future tax liability due to deductible temporary differences, carryforwards, and credits.

Consolidation

The process of combining the financial statements of a parent company with those of its subsidiaries, to present accounts as if the group were a single entity.

Adjustments

Changes made to preliminary financial statement figures to correct errors, account for prepayments, accruals, or to reflect a more accurate representation of the financial position.

Acquisition Method

An accounting technique used in consolidating the financial statements of a group in which a new acquisition is included.