Which of the following is/are true about holding gains on assets?
A)U.S.GAAP recognizes the holding gain on the assets for the increase in values.
B)IFRS permits recognition of the holding gains under certain circumstances.
C)IFRS precludes recognition of the holding gain on assets for the increase in values.
D)Under U.S.GAAP, if in a given period, an asset increases in value, the firm does not record depreciation and amortization during that period.
E)Under IFRS, if in a given period, an asset increases in value, the firm does not record depreciation and amortization during that period.

Question

Quizplus · Accepted Answer

IFRS permits recognition of holding gains on assets under certain circumstances, such as when the gain can be reliably measured and it is probable that future economic benefits associated with the asset will flow to the entity. U.S. GAAP also recognizes holding gains on assets, but the recording of depreciation and amortization is not affected by increases in asset values. Therefore, choices A, D, and E are incorrect. Choice C is incorrect, as it is contrary to the provisions of IFRS.

Which of the Following Is/are True About Holding Gains on Assets