Which of the Following Statements Is Incorrect with Regards to IFRS

question 33

Multiple Choice

Which of the following statements is incorrect with regards to IFRS and U.S.GAAP?

• A)With regard to uncertain tax positions, under IFRS, all potential liabilities must be recognized.
• B)The tax effects related to certain items are reported in equity under U.S.GAAP, under IFRS the tax effects are charged or credited to income.
• C)U.S.GAAP uses an impairment approach for deferred tax assets.The deferred tax asset is recognized in full and reduced by a valuation account if it is more likely than not all or a portion of the deferred tax asset will not be realized.
• D)U.S.GAAP classifies deferred taxes based on the classification of the assets or liability to which it relates.

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Definitions:

Valves

Mechanical devices in an engine that open and close to allow the intake of fuel/air mixture and the exhaust of combustion gases.

Camshaft Open

The period when the camshaft lifts the valve off its seat, allowing for air/fuel mixture intake or exhaust gas expulsion.

Smart Key

A device that allows for keyless entry and ignition of a vehicle, using radio frequency identification (RFID) technology to communicate with the car's locking mechanism.

Antitheft System

A security mechanism designed to deter or prevent unauthorized access or theft of a vehicle or its contents.