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)Under IFRS, if in a given period, an asset increases in value, the firm does not record depreciation and amortization during that period.
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)all of the above

Question

Quizplus · Accepted Answer

IFRS permits recognition of the holding gains under certain circumstances. U.S.GAAP does not allow recognition of holding gains on assets. Both IFRS and U.S. GAAP require the recording of depreciation and amortization expenses regardless of any increase in the value of the asset. Therefore, options A, C, and D are incorrect.

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