Differences That Currently Exist Between IFRS and U

question 34

Multiple Choice

Differences that currently exist between IFRS and U.S.GAAP with regard to the presentation of information on the income statement include all of the following except

• A)different acceptable terminology relating to revenue items
• B)depreciation measures differ when equipment has been revalued
• C)different performance measures such as EBITDA are permitted under IFRS
• D)differences resulting because IFRS does not require the use of accrual accounting under the historical cost framework

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Definitions:

Treasury Bill

A short-term government security issued at a discount from the face value and yielding the face value upon maturity.

Market Rate

The prevailing interest rate available in the marketplace for securities or loans, dictated by supply and demand forces.

Simple Interest

Interest earned or paid only on the original principal amount invested or loaned.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, usually large corporations.