Asked by Waldie Alameda on Jun 18, 2024
Verified
Because of a difference between IFRS and GAAP with respect to the classification of an instrument as a financial liability or as equity, certain instruments classified as liabilities under IFRS may be, under GAAP,
A) not disclosed at all
B) classified as other comprehensive income
C) classified as equity
D) may be classified as assets
IFRS
A global framework for financial reporting, International Financial Reporting Standards are accounting standards established by the International Accounting Standards Board (IASB).
Financial Liability
An obligation that requires the entity to transfer economic benefits including money, goods, or services to another entity as a result of past transactions or events.
- Acquire knowledge about the fundamental variances between IFRS and GAAP in the classification and disclosure of financial instruments.
Verified Answer
Learning Objectives
- Acquire knowledge about the fundamental variances between IFRS and GAAP in the classification and disclosure of financial instruments.
Related questions
How Do the Classification Requirements of IFRS for Instruments as ...
IFRS Require Which of the Following That Is Not Required ...
IFRS Reporting Requires All of the Following Items Except ...
Which of the Following Are the Same Under Both GAAP ...
What Are Measurement Differences in Financial Reporting and What Would ...