Which of the Following Statements Concerning IFRS and U

question 102

Multiple Choice

Which of the following statements concerning IFRS and U.S.GAAP is true?

• A)IFRS permits revaluation of all intangible assets, whereas U.S.GAAP prohibits revaluation of intangible assets.
• B)Gains on exchange of assets when the exchange has commercial substance are recognized under both IFRS and U.S.GAAP.
• C)Changes in depreciation method under IFRS are reported in current and future periods, under U.S.GAAP such changes are treated as prior period adjustments.
• D)All of the choices are true regarding IFRS and U.S.GAAP.

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Definitions:

Pledges Receivables

Outstanding amounts owed to an organization based on pledges made by donors, often recognized in nonprofit accounting.

Journal Entry

The recording of financial transactions into accounting records, detailing the accounts that are affected and in what way.

Borrow

The act of receiving something of value in exchange for the promise to return it or its equivalent at a later date.

Credit Card Company

A financial institution that issues credit cards, extending credit for consumers to purchase goods and services with the promise of future repayment.