Asked by Brandt Cortina on May 26, 2024

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A major difference between IFRS and GAAP regarding valuation of property, plant, and equipment is that

A) IFRS allow valuation increases to be recorded in certain circumstances, but GAAP does not permit increases
B) IFRS and GAAP differ greatly on accounting for nonmonetary exchanges
C) IFRS require capitalization of all repairs and maintenance while GAAP does not
D) IFRS allocate lump-sum purchase costs based on relative book values rather than relative market values

IFRS

IFRS stands for International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally recognized for preparing financial statements.

GAAP

Widely recognized accounting norms and criteria in the U.S. that guide financial statements.

Property, Plant, Equipment

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the short term.

  • Identify differences between IFRS and GAAP in the valuation of property, plant, and equipment.
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Verified Answer

A_
Aydah _ AFGMay 29, 2024
Final Answer :
A
Explanation :
IFRS allows for the revaluation of fixed assets, while GAAP generally does not allow for upward revaluation of fixed assets beyond their original cost.