How Is Reporting for Other Comprehensive Income (OCI) Different Between

question 127

Multiple Choice

How is reporting for other comprehensive income (OCI) different between U.S. GAAP and IFRS?

• A) U.S. GAAP allows either a one-statement approach or a two-statement approach while IFRS requires a two-statement approach using the direct method.
• B) U.S. GAAP allows either a one-statement approach or a two-statement approach while IFRS requires a two-statement approach and allows more items to be classified as OCI.
• C) Both U.S. GAAP and IFRS allow either a one-statement approach or a two-statement approach while IFRS requires the direct method.
• D) Both U.S. GAAP and IFRS allow either a one-statement approach or a two-statement approach while IFRS allows more items to be classified as OCI.

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Definitions:

Forecast Error

The difference between the actual outcome and the predicted value in a forecast, indicating the accuracy of forecasting methods.

Squares

Geometrical shapes with four equal sides and four right angles, or multiplications of a number by itself.

Mean Squared Error

A measure of the average squared differences between estimated and actual values, used to evaluate the accuracy of statistical models.

Exponential Smoothing

A time series forecasting method for univariate data that applies weighing factors which decrease exponentially over time.