Which of the following illustrates a difference between GAAP and IFRS?
A) Under IFRS, component depreciation is allowed.
B) Under IFRS, impairment adjustments cannot be reversed.
C) Under IFRS, the classification of some financial instruments will cause a change to GAAP-calculated debt ratios.
D) Under IFRS, whether or not an entity is consolidated has to do with whether the consolidation was handled using the purchase method.

Question

Quizplus · Accepted Answer

Under IFRS, the classification of some financial instruments will cause a change to GAAP-calculated debt ratios.

Which of the Following Illustrates a Difference Between GAAP and IFRS