How Are Equity Method Investment Disclosures Different for IFRS Companies

question 18

Multiple Choice

How are equity method investment disclosures different for IFRS companies than for U.S. GAAP companies?

• A) IFRS requires additional disclosure related to fair value measurement used when the fair value option was elected.
• B) IFRS require all fair values to be reported, while GAAP only requires disclosures of fair value if the fair value option was elected.
• C) IFRS requires additional disclosures for summarized financial information of the investee, including total assets, liabilities, income and loss.
• D) IFRS requires more detailed disclosures explaining the areas where significant influence was exerted over the investee during the reporting period.

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Definitions:

Product Life Cycle

The advancement of a product through phases such as its launch, growth, peak, and eventual decline in the marketplace.

Early Majority

A segment of the population that adopts new products or innovations after the innovators and early adopters have done so, representing a significant portion of the market.

Diffusion of Innovation

The process by which a new idea, product, or behavior spreads through populations and cultures over time.