20.) A fundamental difference between U.S. GAAP and IFRS is that A. Reversal of inventory write-downs is permitted under IFRS; however, reversal of inventory write-downs is prohibited under U.S. GAAP B. Distribution costs are included in cost of sales under U.S GAAP however, distribution cost are excluded from the cost of sales under IFRS. C. Inventory is generally valued at the lower of cost or market under IFRS; however, inventory is generally valued at the lower of cost or net realizable value under US GAAP D. Marketing cost are included in cost of sales under US GAAP; however, marketing cost are excluded from cost of sales under IFRS.
20.) A fundamental difference between U.S. GAAP and IFRS is that A. Reversal of inventory write-downs is permitted under IFRS; however, reversal of inventory write-downs is prohibited under U.S. GAAP B. Distribution costs are included in cost of sales under U.S GAAP however, distribution cost are excluded from the cost of sales under IFRS. C. Inventory is generally valued at the lower of cost or market under IFRS; however, inventory is generally valued at the lower of cost or net realizable value under US GAAP D. Marketing cost are included in cost of sales under US GAAP; however, marketing cost are excluded from cost of sales under IFRS.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:20.) A fundamental difference between U.S. GAAP and IFRS is that
A. Reversal of inventory write-downs is permitted under IFRS; however, reversal of inventory write-downs is
prohibited under U.S. GAAP
B. Distribution costs are included in cost of sales under U.S GAAP however, distribution cost are excluded from
the cost of sales under IFRS.
C. Inventory is generally valued at the lower of cost or market under IFRS; however, inventory is generally valued
at the lower of cost or net realizable value under US GAAP
D. Marketing cost are included in cost of sales under US GAAP; however, marketing cost are excluded from cost
of sales under IFRS.
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