Asked by Alexis Karageanes on Jul 16, 2024
Verified
The number of years of income statement information to be presented is
A) 2 years under both GAAP and IFRS.
B) 3 years under both GAAP and IFRS.
C) 2 years under GAAP and 3 years under IFRS.
D) 3 years under GAAP and 2 years under IFRS.
Income Statement
A financial document that shows a company's revenue and expenses over a specific period, ending with the net income or loss for that period.
GAAP
Generally Accepted Accounting Principles, a set of rules and standards for financial reporting widely accepted in the accounting profession.
IFRS
Global accounting standards known as International Financial Reporting Standards, designed for the preparation of financial statements.
- Outline the variances in the classification and exhibition of income statement items between IFRS and GAAP.
Verified Answer
ST
Sophie TrotterJul 16, 2024
Final Answer :
D
Explanation :
According to GAAP, the number of years of income statement information to be presented is three years, while for IFRS it is two years. Therefore, companies must follow the requirement of presenting three years of income statement information under GAAP and two years under IFRS.
Learning Objectives
- Outline the variances in the classification and exhibition of income statement items between IFRS and GAAP.