Differences Between IFRS and U

question 19

Multiple Choice

Differences between IFRS and U.S.GAAP in accounting for pensions include all of the following except:

• A)Under U.S.GAAP the asset (liability)on the balance sheet differs from the plan's actual funded status,while under IFRS the asset (liability)on the balance sheet equals the plan's actual funded status.
• B)Under IFRS past service costs are recognized immediately as part of pension expense.
• C)Under IFRS actuarial gains and losses are recognized in OCI without subsequent amortization to pension expense.
• D)Pension expense computed using U.S.GAAP is likely to be higher because it allows firms to use an expected rate of return that exceeds the discount rate.

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Definitions:

Investors'

individuals or entities that allocate capital with the expectation of receiving financial returns.

High Dividend Payout

Refers to a situation where a company distributes a large portion of its earnings to shareholders in the form of dividends, often viewed as a sign of financial stability.

Clientele Groups

Specific segments of a market or customer base that a company targets or serves, based on shared characteristics or preferences.

Current Income

The earnings or revenue that a company generates from its normal business operations in the current period.