How Does Japanese GAAP Differ from IFRS with Respect to Costs

question 1

Multiple Choice

How does Japanese GAAP differ from IFRS with respect to costs of testing a fixed asset prior to use?

• A)Japanese GAAP requires expensing of pre-operating costs,whereas IFRS allows capitalization.
• B)Japanese GAAP requires expensing of pre-operating costs,where IFRS requires capitalization.
• C)Japanese GAAP requires capitalizing pre-operating costs,whereas IFRS requires expensing.
• D)Japanese GAAP allows capitalizing pre-operating costs,whereas IFRS requires expensing.

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Definitions:

Antecedent

An event or occurrence that precedes and influences the behavior, often used in behavior analysis and psychology.

Behaviour Modification

A therapy approach that aims to change undesirable behaviors through the use of positive or negative reinforcement.

Reinforcement

The process of encouraging or establishing a pattern of behavior by offering rewards or consequences.

Biological Preparedness

A concept in psychology that suggests organisms are innately predisposed to form associations between certain stimuli and responses.