Which of the Following Statements Regarding the Difference Between U

question 12

Multiple Choice

Which of the following statements regarding the difference between U.S.GAAP and IFRS is correct?

• A)IFRS has significant guidance for transactions,industries,exceptions,and specific recognition and measurement guidance.
• B)U.S.GAAP contains broad principles to account for transactions across industries,with limited specific guidance and stated exceptions to the general guidance.
• C)In application,U.S.GAAP may be more aligned with IFRS than what might be apparent from the standards themselves.
• D)U.S.GAAP has requirements that are specific to the U.S legal and regulatory environment while IFRS were not developed for any particular jurisdiction.

Grasp the concept of statutory mergers and consolidations and their differences.

Understand the recording and consolidated reporting process in business combinations.

Distinguish between the pooling of interests and the acquisition method of accounting before and after certain dates as per GAAP.

Calculate goodwill and other intangible assets arising from business combinations.

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Definitions:

Historical Cost

The original financial value of an economic item, typically based on its acquisition cost at the time of purchase or construction.

Relevant

Pertinent to the matter at hand; information or factors that are applicable to the current situation or decision-making process.

Qualitative

Pertaining to descriptions or distinctions based on some quality or characteristic rather than on some quantity or measured value.

Numerical Terms

Mathematical expressions or figures used to describe quantity, order, or relationships between amounts in data or calculations.