Which of the Following Statements Concerning IFRS and U

question 92

Multiple Choice

Which of the following statements concerning IFRS and U.S. GAAP is true?

• A)IFRS permits revaluation of all intangible assets, whereas U.S.GAAP prohibits revaluation of intangible assets.
• B)Gains on exchange of assets when the exchange has commercial substance are recognized under both IFRS and U.S.GAAP.
• C)Changes in depreciation method under IFRS are reported in current and future periods, under U.S.GAAP such changes are treated as prior period adjustments.
• D)All of the choices are true regarding IFRS and U.S.GAAP.

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Definitions:

Recession Overseas

An economic downturn that occurs in a country or region outside of one's own, potentially affecting global trade and economic stability.

Exports

Goods and services that are produced domestically and sold abroad

Aggregate Demand

The entire need for goods and services within an economy's market, assessed at a certain price level throughout a specific time span.

Wealth Effect

The change in spending that accompanies a change in perceived wealth, usually through market price changes of assets like homes or investments.