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:

Call Price

The price at which a bond or other security can be repurchased by the issuer before its maturity date, usually at a premium to the face value.

Nominal Yield To Maturity

The return an investor expects to earn if a bond is held until its maturity date, without adjusting for inflation.

Semiannual Coupon

A semiannual coupon refers to the interest payment made to bondholders twice a year.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily reflect its market value.