[Ralphie Dos Nachos]

HOW IS THIS A DIFFERENCE IF IT SAYS BOTH GAAP AND IFRS USE THE TERM RETAINED EARNINGS?!?!
Correct answer was A

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.

You answered D. The correct answer is A.

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.

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