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:

Three-Fifths Compromise

A historical agreement made during the 1787 United States Constitutional Convention, counting three out of every five slaves as people for determining state representation and taxation.

Confederation Congress

The governing body of the United States under the Articles of Confederation, in operation from 1781 to 1789.

National Commercial Policy

A governmental strategy designed to promote trade, investment, and economic growth within a nation.

Land Ordinance

A foundational legislative act passed in 1785 by the United States Congress for the systematic surveying, planning, and sale of land in the Northwestern Territory.