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Question #: 115 Category: 1C4 Statement of Changes in Equity
With respect to the statement of changes in equity, what are U.S. GAAP and IFRS differences?
A. Both U.S. GAAP and IFRS use the term “retained earnings.”
B. IFRS uses the same stock account titles as U.S. GAAP.
C. U.S. GAAP and IFRS account for treasury stock in the same manner.
D. IFRS uses “Paid-in Capital” to account for revaluation of property, plant, and equipment; mineral resources; and intangible assets.
“Both GAAP and IFRS (International Financial Reporting Standards) use the term “retained earnings.” IFRS includes a “revaluation surplus” related to revaluation of property, plant, and equipment; mineral resources; and intangible assets….IFRS uses different stock account titles than U.S. GAAP. Instead of “Common Stock,” IFRS uses an account titled “Share Capital.”….IFRS accounts for treasury stock retirements only by charging an excess in purchase price and issue cost to paid-in capital.”
The answer is A, both GAAP and IFRS use retained earnings. How can this be a difference between them if they both use retained earnings?
Please tell me it’s just a mistake in the wording of the question and that I haven’t, in fact, stepped through the looking glass.
BEC: Fall 2016
AUD: Spring 2016
REG: Summer 2016
FAR: RETAKE
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