Significant Differences Between IFRS and Chinese GAAP Include All of the Following

question 7

Multiple Choice

Significant differences between IFRS and Chinese GAAP include all of the following EXCEPT:

• A) Chinese GAAP allows the use of LIFO while IFRS prohibits it.
• B) Chinese GAAP has different related party disclosure requirements.
• C) Chinese GAAP follows the cost principle while IFRS allows for revaluations and recoveries of impairment losses.
• D) Chinese GAAP uses the equity method of accounting for jointly controlled entities while IFRS also allows proportionate consolidation.

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Definitions:

Target Return-on-investment Pricing

A pricing method aimed at achieving a specific return on investment by setting prices based on the required rate of return.

Automobile Manufacturer

A company engaged in the design, production, marketing, and selling of motor vehicles.

Book Publisher

A company or individual responsible for bringing a book to the public by handling its production, marketing, and distribution.

Customary Pricing

A pricing strategy where the price is based on what the market expects to pay, often influenced by tradition or standard practice.