Under USGAAP and IFRS, the Firm Measures the Assets and Liabilities

question 69

Multiple Choice

Under U.S.GAAP and IFRS, the firm measures the assets and liabilities of a discontinued operation at the lower of their _____ It reports any gain or loss that results in the Discontinued Operations section of the income statement.The Discontinued Operations section also includes income or loss from operating the unit for that year.Financial statements for prior years included for comparative purposes classify those amounts also as a discontinued operation.

• A)carrying values or their fair values.
• B)net realizable values or their fair values.
• C)carrying values or the present value of future cash flows.
• D)net realizable values or the present value of future cash flows.
• E)liquidation values or the present value of future cash flows.

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Definitions:

Employer Contributions

Payments made by employers towards employee benefits, such as retirement plans, health insurance, and social security.

Employee Entitlements

Rights or benefits that are guaranteed to employees by law or company policy, such as leave entitlements, retirement benefits, and healthcare.

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in purchasing power.

Health Care Costs

Expenses related to the provision of health care services, including the cost of treatments, medications, medical procedures, and hospital stays.