Which of the Following Is Not a Difference Between IFRS

question 16

Multiple Choice

Which of the following is not a difference between IFRS and U.S.GAAP in according for non-current liabilities?

• A)Non-current liabilities follow current liabilities on the statement of financial position under U.S.GAAP, but precede current liabilities under IFRS.
• B)The criteria for recognizing environment liabilities is more stringent under U.S.GAAP compared to IFRS.
• C)Bond issuance costs are recorded as a reduction of the carrying value of the debt under U.S.GAAP but are recorded as an asset and amortized to expense over the term of the debt under IFRS.
• D)Under U.S.GAAP, bonds payable is recorded at the face amount and any premium or discount is recorded in a separate account.Under IFRS, bonds payable is recorded at the carrying value so no separate premium or discount accounts are used.

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Definitions:

Saving

The act of setting aside a portion of one’s income for future use, instead of spending it immediately.

Disposable Income

After subtracting income taxes, disposable income is the money remaining for individuals or households to spend or save.

MPC

The marginal propensity to consume, indicating the proportion of an additional unit of income that is spent on consumption.

MPS

Marginal Propensity to Save, which is the portion of additional income that a household saves rather than consumes.