All of the Following Are Differences Between IFRS and U

question 132

Multiple Choice

All of the following are differences between IFRS and U.S. GAAP in accounting for liabilities except:

• A) When a bond is issued at a discount U.S. GAAP records the discount in a separate contra-liability account. IFRS records the bond net of the discount.
• B) Under IFRS, bond issuance costs reduces the carrying value of the debt. Under U.S. GAAP, these costs are recorded as an asset and amortized to expense over the term of the bond.
• C) U.S. GAAP, but not IFRS uses the term "troubled debt restructurings."
• D) U.S. GAAP, but not IFRS uses the term "provisions" for contingent liabilities which are accrued.

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Definitions:

Idle Capacity

Unused or underutilized production capacity within a business, often resulting in inefficiency and increased costs.

Organization-Sustaining Costs

Costs that are not directly attributable to any specific business activity, product, or service but are necessary for the overall operation of an organization.

Production Order Processing

The series of steps involved in producing goods or services, from the initiation of the order to its completion.

Cost Analysis Report

A document that details the costs associated with a project or a product, breaking down each component and analyzing its impact on the overall cost.