All of the following are differences between IFRS and U.S. GAAP in accounting for liabilities except:
A) When a bond is issued at a discount U.S. GAAP records the discount in a separate contra-liability account. IFRS records the bond net of the discount.
B) Under IFRS, bond issuance costs reduces the carrying value of the debt. Under U.S. GAAP, these costs are recorded as an asset and amortized to expense over the term of the bond.
C) U.S. GAAP, but not IFRS uses the term "troubled debt restructurings."
D) U.S. GAAP, but not IFRS uses the term "provisions" for contingent liabilities which are accrued.

Question

Quizplus · Accepted Answer

Choice D is incorrect because it inaccurately describes the terminology used by IFRS and U.S. GAAP. IFRS uses the term "provisions" to refer to certain types of contingent liabilities, whereas U.S. GAAP typically uses the term "accrued liabilities" for similar obligations.

All of the Following Are Differences Between IFRS and U