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:

Broker's Commissions

Fees charged by a broker for executing transactions or providing specialized services.

Price Concessions

Discounts or adjustments in the price of a good, service, or security, often granted to finalize a deal.

Effective Spread

The measure of the actual cost of a trading transaction, calculated as the difference between the executed trade price and the midpoint of the best bid and ask quotes at the time of the trade.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.