Which of the Following Is Generally True About the Differences

question 18

Multiple Choice

Which of the following is generally true about the differences between U.S. GAAP and IFRS?

• A) U.S. GAAP is more flexible than IFRS.
• B) U.S. GAAP tends to be more rules-based and IFRS tend to be principles-based.
• C) More professional judgment is required to apply U.S. GAAP than is required for implementing IFRS.
• D) In all cases, U.S. GAAP is more detailed than the IFRS.

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Definitions:

Companies Creditors Arrangements Act

A Canadian federal law providing financially troubled corporations the opportunity to restructure their affairs through a formal plan of arrangement.

Bankruptcy and Insolvency Act

Legislation that outlines the legal procedures for dealing with the debts of individuals and businesses in financial trouble.

Canadian Criminal Code

A legal document that codifies most criminal offenses and procedures in Canada, serving as the primary source for criminal law in the country.

Over-the-counter Market

A decentralized market without a central physical location, where market participants trade stocks, commodities, currencies, and other financial instruments directly between two parties without a broker's intermediation.