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Asked by Tyler Decker on May 07, 2024

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The requirements for accounting for and reporting of inventories under IFRS compared to GAAP tend to be more

A) detailed.
B) rules-based.
C) principles-based.
D) full of disclosure requirements.

IFRS

International Financial Reporting Standards represent worldwide accounting norms that facilitate the creation of financial statements.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards used for financial reporting and accounting.

Principles-based

An approach that bases decisions on general principles or values rather than specific rules.

  • Recognize the requirements and differences in inventory accounting and reporting under GAAP and IFRS.
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Verified Answer

DW
Diamond Williams

May 13, 2024

Final Answer :
C
Explanation :
IFRS tends to be more principles-based in their approach to accounting for and reporting of inventories, compared to the more rules-based approach of GAAP. This allows for more judgment and interpretation when applying the principles to specific situations. However, IFRS does also have detailed disclosure requirements.

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