Which of the Following Illustrates a Difference Between GAAP and IFRS

question 17

Multiple Choice

Which of the following illustrates a difference between GAAP and IFRS?

• A) Under IFRS, component depreciation is allowed.
• B) Under IFRS, impairment adjustments cannot be reversed.
• C) Under IFRS, the classification of some financial instruments will cause a change to GAAP-calculated debt ratios.
• D) Under IFRS, whether or not an entity is consolidated has to do with whether the consolidation was handled using the purchase method.

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Definitions:

Two-way

A method or process involving mutual feedback, communication, or interaction, where both parties contribute to the exchange.

One-way

A mode of communication or interaction that involves a message being sent from one party to another without expecting or allowing for a direct response or feedback.

Large Firms

Corporations or businesses that have a significant number of employees, a large volume of sales, or substantial assets.

Small Firms

Businesses characterized by a limited number of employees, often viewed as more agile but with lesser resources compared to larger corporations.