Why Is It Difficult to Compare IAS 18, Revenue, to U.S.GAAP

question 34

Multiple Choice

Why is it difficult to compare IAS 18, Revenue, to U.S.GAAP?

• A)The IASB definition of revenue is very complicated, whereas the definition of revenue under U.S.GAAP is straightforward.
• B)Revenue is not defined under U.S.GAAP.
• C)There is no single standard in U.S.GAAP that deals solely with revenue.
• D)Under U.S.GAAP, revenue is defined in terms of cash, whereas IAS 18 defines revenue in terms of a variety of resources.

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Definitions:

Nearest 0.01%

Rounding or approximating a numerical value to the closest hundredth of a percent.

Equivalent Interest

The equal effectiveness of different interest rates with respect to compounding periods over a specified period.

Nearest 0.01%

Rounding or approximating a numerical value to the closest one-hundredth of a percent.

Interest Rate

The percentage charged on a loan or paid on an investment for the use of money, calculated on an annual basis.