All of the Following Are Differences Between IFRS and U

question 53

Multiple Choice

All of the following are differences between IFRS and U.S.GAAP in according for liabilities except:

• A)When a bond is issued at a discount, U.S.GAAP records the discount in a separate contra-liability account.IFRS records the bond net of the discount.
• B)Under IFRS, bond issuance costs reduces the carrying value of the debt.Under U.S.GAAP, these costs are recorded as an asset and amortized to expense over the term of the bond.
• C)U.S.GAAP, but not IFRS uses the term "troubled debt restructurings."
• D)U.S.GAAP, but not IFRS uses the term "provisions" for contingent liabilities which are accrued.

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Definitions:

Normal Good

a good for which demand increases as the income of consumers increases and falls when their income decreases, assuming all other factors are constant.

Income Level

The amount of monetary or material wealth that an individual, family, or group receives, usually quantified on an annual basis.

Chocolate-Covered Peanuts

Peanuts that have been coated in a layer of chocolate, serving as a sweet and crunchy snack.

Preference

An individual's choice or inclination towards a specific option among a set of alternatives based on tastes, utility, or desirability.