Changes in Depreciation Method Under IFRS Are Reported in Current

question 59

True/False

Changes in depreciation method under IFRS are reported in current and future periods, but under U.S. GAAP such changes are treated as prior period adjustments.

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Definitions:

Net Income

This is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Variable Costing

An accounting method that only considers variable costs (costs that change with production levels) in determining product cost, excluding fixed costs.

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. It indicates the efficiency with which a company uses its materials and labor to produce and sell products profitably.