Which of the Following Statements Is True of the Treatment

question 32

Multiple Choice

Which of the following statements is true of the treatment of actuarial gains and losses under IFRS and U.S. GAAP?

• A) IFRS requires the disclosure of actuarial gains and losses in the notes to financial statements.
• B) IFRS requires immediate recognition of actuarial gains and losses in net income.
• C) U.S. GAAP allows a choice between immediate recognition in other comprehensive income or in net income.
• D) U.S. GAAP requires the actuarial gains and losses to be recognized immediately through other comprehensive income.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by dividing current assets by current liabilities.

Current Liabilities

Short-term financial obligations that a company is required to pay within one year, such as accounts payable and short-term loans.

Current Assets

Current assets refer to the resources owned by a company that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business.

Profits

The financial gain realized when the revenue from business activities exceeds the expenses and costs.