Which of the Following Is Not a Difference Between IFRS

question 125

Multiple Choice

Which of the following is not a difference between IFRS and U.S. GAAP in accounting for non-current liabilities?

• A) Non-current liabilities follow current liabilities on the statement of financial position under U.S. GAAP, but precede current liabilities under IFRS.
• B) The criteria for recognizing environmental liabilities is more stringent under U.S. GAAP compared to IFRS.
• C) Bond issuance cost are recorded as a reduction of the carrying value of the debt under U.S. GAAP but are recorded as an asset and amortized to expense over the term of the debt under IFRS.
• D) Under U.S. GAAP, bonds payable is recorded at the face amount and any premium or discount is recorded in a separate account. Under IFRS, bonds payable is recorded at the carrying value so no separate premium or discount accounts are used.

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Definitions:

Discretionary Policy

Refers to economic strategies and actions, such as changes in tax rates or government spending, opted by the government to manage the economy.

Passive Approach

An investment strategy that involves minimal buying and selling actions, typically focused on long-term investment in index funds and other diversified holdings.

Expansionary Monetary Policy

A policy by central banks to increase the money supply and decrease interest rates to stimulate economic growth.

Real Output

The measure of goods and services produced by an economy, adjusted for inflation or deflation, showing true growth or contraction.