The financial reporting standards for property, plant, and equipment are similar under U.S.GAAP and IFRS except for
A)upward remeasurements for fair value increases, only.
B)recognition and measurement of asset impairment losses, only.
C)upward remeasurements for fair value increases and recognition and measurement of asset impairment losses.
D)downward remeasurements for fair value decreases, only.
E)downward remeasurements for fair value decreases and recognition and measurement of asset impairment losses.

Question

Quizplus · Accepted Answer

The financial reporting standards for property, plant, and equipment are generally similar under U.S. GAAP and IFRS. However, two notable differences are the recognition and measurement of asset impairment losses and upward remeasurements for fair value increases. Both of these differences are applicable under both U.S. GAAP and IFRS, so the correct answer is C, which includes both differences. Downward remeasurements for fair value decreases are generally not allowed under either U.S. GAAP or IFRS.

The Financial Reporting Standards for Property, Plant, and Equipment Are