Which One of the Following Describes a Difference in How

question 40

Multiple Choice

Which one of the following describes a difference in how the equity method is applied under GAAP than under IFRS?

• A) the equity method is generally applied to limited partnerships under IFRS for investments of more than 3 to 5%, whereas GAAP adopts a "significant influence" principle.
• B) IFRS requires uniform accounting policies, whereas GAAP does not.
• C) significant influence is presumed if the investor has 20% or more of the voting rights in a corporate investee under GAAP, whereas IFRS adopts a "facts and circumstances" approach that looks beyond the voting rights percentage.
• D) GAAP requires consideration of potential voting rights on currently exercisable of convertible instruments, whereas IFRS does not.

Analyze the discrepancy between law in theory and law in action and its social implications.

Understand the significance of critical thinking within nursing management and decision-making processes.

Grasp the methodology of developing a nursing diagnosis based on comprehensive patient assessment.

Identify the iterative and non-linear nature of critical thinking in nursing.

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Definitions:

Cash Available

The amount of liquid assets that are readily available for use by a company or individual.

Retained Earnings

Retained Earnings refer to the portion of net income that a company keeps after paying out dividends to its shareholders, which is then reinvested in the business or used to pay off debt.

Prior Period

A term referring to the financial events or conditions from a previous accounting period.

Cash Dividend

A cash dividend is a payment made by a company out of its earnings to shareholders, usually in the form of cash.