IFRS and GAAP accounting are the same for each of the following except for the
A) recording of receivables.
B) recognition of sales returns and allowances.
C) recording of a factoring transaction.
D) recognition of sales discounts.

Question

Quizplus · Accepted Answer

IFRS and GAAP differ in their treatment of factoring transactions, particularly in how they recognize the transfer of receivables. Under IFRS, the focus is on the transfer of control and risks of the receivables, while GAAP emphasizes the surrender of control. This leads to differences in whether the transaction is recorded as a sale or a financing activity.

IFRS and GAAP Accounting Are the Same for Each of the Following