Which of the Following Is a Difference Between IAS 37

question 12

Multiple Choice

Which of the following is a difference between IAS 37 and U.S. GAAP with respect to restructuring provisions?

• A) U.S. GAAP does not allow recognition of a restructuring provision until a liability has been incurred.
• B) There is no difference between IAS 37 and U.S. GAAP with respect to restructuring provisions.
• C) IAS 37 does not allow recognition of a restructuring provision until a liability has been incurred.
• D) A restructuring provision and related loss is more likely to occur later under IAS 37 than under U.S. GAAP.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.