All of the following statements are true except:
A) Under U.S. GAAP, a contingent item should be recorded as a liability if the loss or outflow is probable and can be reasonably estimated.
B) IFRS requires a liability to be recorded as a present value amount.
C) The threshold for recording items as liabilities is a lower under U.S. GAAP than under IFRS.
D) The threshold for recording items as liabilities is a lower under IFRS than under U.S. GAAP.

Question

Quizplus · Accepted Answer

Under U.S. GAAP, the threshold for recording a liability is higher (i.e., more stringent) than under IFRS, which means that IFRS has a lower threshold for recognizing liabilities.

All of the Following Statements Are True Except