Under both GAAP and IFRS, if a company believes that a long-term contract will lose money, it must recognize the expected losses immediately, and should not allocate any losses to future periods.

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Under both GAAP and IFRS, a company must recognize the expected losses immediately if it believes a long-term contract will lose money. The losses cannot be allocated to future periods. This is known as the "full disclosure principle" and is meant to provide transparency and accuracy in financial reporting.

Under Both GAAP and IFRS, If a Company Believes That