Which of the Following Is Not a Way IFRS Differs

question 39

Multiple Choice

Which of the following is not a way IFRS differs from U.S. GAAP for asset retirement obligations?

• A) The transaction may be accounted for using either the proportional method or remote method, not just the proportional method.
• B) The nature of the obligation may be either economic or legal, not just legal.
• C) Valuation is based on estimated costs, not fair value.
• D) Valuation is discounted using a pre-tax rate, not an after-tax rate.

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Definitions:

Accounting

A system that collects and processes (Analyzes, measures, and records) financial information about an organization and reports that information to decision makers.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.

Operating Activities

Activities that are part of a company's primary operations, including production, sales, and day-to-day business functions.

Indirect Method

A financial reporting approach used to generate the statement of cash flows, where net income is adjusted for changes in non-cash accounts to reveal cash generated or consumed by operating activities.