Which of the Following Is Required by IFRS

question 36

Multiple Choice

Which of the following is required by IFRS?

• A) Resources acquired through government grants must be recorded at cost.
• B) Resources acquired through government grants must be recorded at fair value.
• C) Resources acquired through government grants must be accounted for using the capital approach.
• D) Resources acquired through government grants must be accounted for using the income approach.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue.

Annual Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life on a yearly basis.

Investment Balance

The total value of all investments held by an individual or entity at a given time, including stocks, bonds, and other securities.

Equity Method

An accounting technique used to record investments in other companies when the investing company has significant influence but does not control the investee.