Asked by Carlos Orellana on May 25, 2024
Verified
Firms that use International Financial Reporting Standards (IFRS)are required to order assets and liabilities from least liquid to most liquid on the statement of financial position.
Statement of Financial Position
A financial statement that shows an entity's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial health.
- Comprehend the distinctions in financial reporting conventions and procedures between U.S. GAAP and IFRS, with a focus on balance sheet structuring and liquidity.
Verified Answer
HB
Haapppyy BAAABBBSSSYYYMay 31, 2024
Final Answer :
False
Explanation :
Under IFRS, firms are not required to order assets and liabilities from least liquid to most liquid; instead, they typically present assets and liabilities in order of liquidity, but the specific ordering can vary based on the entity's operations and industry.
Learning Objectives
- Comprehend the distinctions in financial reporting conventions and procedures between U.S. GAAP and IFRS, with a focus on balance sheet structuring and liquidity.
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