FAR 1.08 - MAJOR DIFFERENCES BETWEEN US GAAP AND IFRS Flashcards
1
Q
FAR 1.08 - MAJOR DIFFERENCES BETWEEN US GAAP AND IFRS
The criteria for recognizing an element of financial reporting are that occurrence must be probable and measurement must be reliable under:
Neither IFRS nor US GAAP
IFRS but not US GAAP
US GAAP but not IFRS
US GAAP and IFRS
A
IFRS but not US GAAP
EXPLANATION:
The criteria for recognizing an element of financial reporting under IFRS are probability of occurrence and reasonable measurement.
Under US GAAP, the criteria for recognition are that the item conforms to the definition of an element of financial reporting, that the item is capable of being measured in monetary terms, and that the item is relevant and it is faithfully represented.
