All of the following statements related to current liabilities for U.S.GAAP and IFRS are true except:
A)The definitions and characteristics of current liabilities are broadly similar for both U.S.GAAP and IFRS.
B)The term provision is typically used under IFRS to refer to what is titled liability under U.S.GAAP.
C)Because tax regulatory systems of countries are different,the approach to recording taxes is totally different.
D)When there is little uncertainty surrounding current liabilities,both require companies to record them in a similar manner.
E)When there is a known current obligation that involves an uncertain amount,but one that can be reasonable estimated,both require similar treatment.

Question

Quizplus · Accepted Answer

The statement "Because tax regulatory systems of countries are different, the approach to recording taxes is totally different" is not true. Although there may be some differences in tax regulations among countries, both U.S.GAAP and IFRS require companies to recognize and measure taxes in a similar manner.

All of the Following Statements Related to Current Liabilities for U.S.GAAP