The Only Significant Difference Between the Provisions of International Accounting

question 44

Multiple Choice

The only significant difference between the provisions of international accounting standards as promulgated by IAS 39 and U.S.accounting standards under FASB ASC Topic 860 (Transfers and Servicing is

• A) IAS 39 requires accounting for all investments in debt securities to be on a fair value basis while ASC 860 does not.
• B) IAS 39 allows all unrealized gains and losses on securities valued at fair value to be reported in net income for the period while ASC 860 does not.
• C) IAS 39 requires trading securities to be reported on a fair value basis but not securities available for sale.
• D) IAS 39 does not permit the reporting of unrealized gains and losses on securities other than trading securities to be recorded as part of equity.

---

Definitions:

Scientific Method

A method of research with defined steps that include experiments and careful observation to validate or disprove a hypothesis.

Housing Prices

The monetary value assigned to residential dwellings based on market conditions, location, and attributes of the property.

Natural Experiment

An observational study in which an event or a policy affects the variables of interest, allowing researchers to study outcomes without manipulating the study environment.

Lower Gas Prices

A decrease in the cost of gasoline, which can affect consumer spending, travel behavior, and the overall economy.