What Is One Major Difference Between IFRS and U

question 50

Multiple Choice

What is one major difference between IFRS and U.S.GAAP relative to correction of errors?

• A)U.S.GAAP is silent as to how to treat errors that have been discovered.
• B)IFRS is silent as to how to treat errors that have been discovered.
• C)Under U.S.GAAP, a prospective approach is taken.
• D)Under IFRS, if it's impractical to restate financial statements, then no restatement is necessary.

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from their face value, with maturities typically less than a year.

Unsystematic Risk

The risk associated with a particular company or industry, also known as idiosyncratic risk or specific risk.

Retail Industry

The sector of the economy that sells consumer goods directly to customers.

Systematic Risk

The inherent risk associated with the entire market or market segment, which cannot be avoided through diversification.