Which of the Following Is a Difference Between IAS 37

question 12

Multiple Choice

Which of the following is a difference between IAS 37 and U.S. GAAP with respect to restructuring provisions?

• A) U.S. GAAP does not allow recognition of a restructuring provision until a liability has been incurred.
• B) There is no difference between IAS 37 and U.S. GAAP with respect to restructuring provisions.
• C) IAS 37 does not allow recognition of a restructuring provision until a liability has been incurred.
• D) A restructuring provision and related loss is more likely to occur later under IAS 37 than under U.S. GAAP.

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Definitions:

Proactive

Taking initiative by acting in anticipation of future problems, needs, or changes rather than reacting to events after they occur.

Low-Quality Exchange

A relationship characterized by minimal trust, respect, and commitment, often resulting in poor cooperation and communication.

Standard Benefits

Typical or customary advantages provided to employees beyond their wages, such as health insurance, retirement plans, and paid time off.

Endorphins

Natural chemicals in the body that interact with brain receptors to reduce pain perception and boost feelings of pleasure or satisfaction.