Significant Differences Between IFRS and Chinese GAAP Include All of the Following

question 7

Multiple Choice

Significant differences between IFRS and Chinese GAAP include all of the following EXCEPT:

• A) Chinese GAAP allows the use of LIFO while IFRS prohibits it.
• B) Chinese GAAP has different related party disclosure requirements.
• C) Chinese GAAP follows the cost principle while IFRS allows for revaluations and recoveries of impairment losses.
• D) Chinese GAAP uses the equity method of accounting for jointly controlled entities while IFRS also allows proportionate consolidation.

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Definitions:

Cross-Cultural Differences

Refer to the variations in norms, values, beliefs, and practices among people from different backgrounds and societies.

Managerial Activities

Tasks and responsibilities undertaken by managers, such as planning, leading, organizing, and controlling to achieve organizational goals.

Mintzberg

A reference to Henry Mintzberg, a renowned academic and author known for his work on business and management practices, especially in the context of organizational structures and strategy.

Managerial Role

The specific duties and responsibilities assigned to managers, including planning, organizing, leading, and controlling an organization's resources.