Asked by gabriela huselton on May 13, 2024
Verified
It is permissible for a firm that reports in accordance with IFRS to emphasize its liquidity by placing current assets and current liabilities in close proximity to one another on the balance sheet.
IFRS
International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that aim to standardize financial reporting around the world.
Current Assets
Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle if longer.
Current Liabilities
Obligations that a company is required to pay within the next year or within its operating cycle if longer.
- Acquire knowledge of the contrasts in accounting reporting standards and practices as per U.S. GAAP and IFRS, especially in relation to balance sheet organization and liquidity metrics.
Verified Answer
Learning Objectives
- Acquire knowledge of the contrasts in accounting reporting standards and practices as per U.S. GAAP and IFRS, especially in relation to balance sheet organization and liquidity metrics.
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