How Does U

question 13

Multiple Choice

How does U.S.GAAP differ from IFRS with respect to presenting consolidated financial statements?

• A)U.S.GAAP requires all controlled subsidiaries to be consolidated, whereas IFRS allows for optional consolidated financial statements.
• B)IFRS excludes subsidiaries acquired for disposal within one year from the consolidation requirement, whereas U.S.GAAP requires all controlled subsidiaries to be consolidated.
• C)U.S.GAAP allows a company to exclude subsidiaries it is holding for sale from the consolidation process.
• D)IFRS requires the parent company to own 50% of the voting shares of the subsidiary before consolidation is allowed.

---

Definitions:

Repression

In psychodynamic theory, the automatic (unconscious) ejection of anxiety-evoking ideas, impulses, or images from awareness.

Impulses

Sudden, involuntary urges to act, driven by internal or external stimuli.

Defense Mechanism

Unconscious tactics employed to shield oneself from the anxiety caused by thoughts or feelings deemed unacceptable.

Psychic Energy

In psychoanalytic theory, a form of energy that drives all human behavior, originating from innate biological instincts.