Under U.S.GAAP,assets are presented in decreasing order of liquidity.Under IFRS,
A)fixed assets may be presented first followed by the current assets displayed in increasing order of liquidity.
B)the current assets are displayed in increasing order of liquidity.
C)investments are listed first in descending order of maturity.
D)a company may present its assets in alphabetical order if it so desires.

Question

Quizplus · Accepted Answer

Under IFRS, there is more flexibility in the presentation of the balance sheet. Companies can choose to present fixed assets first, followed by current assets in increasing order of liquidity, which is different from the U.S. GAAP requirement of presenting assets in decreasing order of liquidity.

Under USGAAP,assets Are Presented in Decreasing Order of Liquidity