Asked by Brandt Cortina on May 26, 2024
Verified
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.
Verified Answer
Learning Objectives
- Identify differences between IFRS and GAAP in the valuation of property, plant, and equipment.
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