All of the following statements are true except:
A) The threshold for recording items as liabilities is a lower under IFRS than under U.S.GAAP.
B) The threshold for recording items as liabilities is a lower under U.S.GAAP than under IFRS.
C) IFRS requires a liability to be recorded as a present value amount.
D) 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.

Question

Quizplus · Accepted Answer

The statement in option B is false. The threshold for recording items as liabilities is generally higher under U.S.GAAP compared to IFRS. Option A and C are true as IFRS has a lower threshold for recognizing liabilities and requires them to be recorded as present value amounts. Option D is also true as per U.S.GAAP guidelines.

All of the Following Statements Are True Except