The Accounting Is Essentially the Same Under IFRS and GAAP

question 120

Multiple Choice

The accounting is essentially the same under IFRS and GAAP for

• A) prior period adjustments.
• B) revaluation surplus.
• C) equity account terminology.
• D) All of these answers are correct.

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Definitions:

Issuance Price

The price at which securities, such as stocks or bonds, are sold to the public or investors when they are first offered.

Market Rate

Market rate, or market interest rate, refers to the prevailing rate of interest that borrowers and lenders can expect to transact at, in the wider market.

Effective-interest Amortization

A method of calculating the amortized cost of a bond or loan by applying the effective interest rate to the outstanding balance.

Interest Payment

The payment made to a lender by a borrower in return for the use of borrowed money, typically represent a fixed percentage of the principal.