Which of the Following Statements Is False Regarding U

question 38

Multiple Choice

Which of the following statements is false regarding U.S.GAAP versus IFRS financial statement presentation?

• A) U.S.GAAP does not require the presentation of a classified balance sheet.
• B) IFRS requires the classification of assets and liabilities as current and noncurrent.
• C) If a range of values is available for reporting an outcome in a loss contingency, U.S.GAAP requires a company to report the high end of the range as a probable outcome.
• D) If a range of values is available for reporting an outcome in a loss contingency, IFRS requires a company to record the mid-point of the range as a probable outcome.

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Definitions:

Direct Costs

Expenses that can be directly linked to the production of specific goods or services, like materials and labor.

Completed-Contract

Completed-contract method is an accounting technique used to recognize the revenues and expenses of long-term projects only upon their completion.

Percentage-of-Completion

A method of revenue recognition in accounting where revenue and expenses are recognized as a project progresses, based on the percentage of work completed.

Revenue Recognition

The accounting principle that dictates the process and timing by which revenue is recorded and recognized as income on the financial statements.