Which of the Following Is a Difference Between U

question 59

Multiple Choice

Which of the following is a difference between U.S. GAAP and IFRS in accounting for equity investments with no significant influence and a readily determinable fair value?

• A) IFRS requires all equity securities to be reported at cost, and allows companies to report gains and losses only when those securities are sold.
• B) Under IFRS, equity investments with no significant influence and a readily determinable fair value are reported at fair value.
• C) Under IFRS, unrealized gains and losses can be reported as part of other comprehensive income instead of net income, if elected.
• D) IFRS requires companies to report all equity securities at adjusted cost.

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Definitions:

Structuring Decision

Involves organizing and prioritizing decision-making factors and criteria to make complex decisions more manageable.

Goal Setting

Goal setting involves establishing specific, measurable, achievable, relevant, and time-bound objectives to guide behavior and track progress.

Prefrontal Cortex

A region in the frontal lobe that is involved with executive functioning.

Social Rules

Guidelines for behavior that are accepted by a group or society, shaping interactions and expectations among individuals.