How does Japanese GAAP differ from IFRS with respect to preoperating costs?
A)Japanese GAAP requires expensing of preoperating costs, whereas IFRS allows capitalization.
B)Japanese GAAP requires expensing of preoperating costs, whereas IFRS requires capitalization.
C)Japanese GAAP requires capitalizing preoperating costs, whereas IFRS requires expensing.
D)Japanese GAAP allows capitalizing preoperating costs, whereas IFRS requires expensing.

Question

Quizplus · Accepted Answer

Japanese GAAP allows for the capitalization of preoperating costs under certain conditions, whereas IFRS generally requires these costs to be expensed as incurred.

How Does Japanese GAAP Differ from IFRS with Respect to Preoperating