Which Receivables Accounting and Reporting Issue Is Not Essentially the Same

question 58

Multiple Choice

Which receivables accounting and reporting issue is not essentially the same for IFRS and GAAP?

• A) The use of allowance accounts and the allowance method.
• B) How to record discounts.
• C) How to record factoring.
• D) All of these answer choices are essentially the same for IFRS and GAAP.

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Definitions:

Pooling of Interests

An accounting method used in business combinations that treats the entities as if they have been combined retroactively, distributing the equity shares among the combined entity's shareholders.

Purchase Method

An accounting method used to consolidate the financial statements of a parent company and its subsidiaries, reflecting the purchase of one entity by another.

Statutory Consolidation

The process of combining the financial statements of a group of companies into one, as required by law, to present the financial condition and operations of the group as a single entity.

Legal Corporations

Business entities that are legally recognized as individual entities with rights and liabilities distinct from those of their members or shareholders.