Which of the Following Statements Is Correct

question 62

Multiple Choice

Which of the following statements is correct?

• A)IFRS treats major overhauls that allow the continued use of an asset, as replacements; ASPE treats them as expenses.
• B)ASPE treats major overhauls that allow the continued use of an asset, as replacements; IFRS treats them as expenses.
• C)Both IFRS and ASPE treat major overhauls that allow the continued use of an asset, as replacements.
• D)Both IFRS and ASPE treat major overhauls that allow the continued use of an asset, as expenses.

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Definitions:

Charitable Subscription

A commitment to donate a specified amount of money to a charity or non-profit organization.

Unliquidated Debt

A debt for which the exact amount owed has not been determined or agreed upon.

Accord And Satisfaction

A legal contract wherein parties agree to a settlement that conclusively resolves a dispute or debt.

Forbearance To Sue

An agreement to refrain from filing a lawsuit as part of a negotiation or compromise, despite having grounds for legal action.