A firm presents the following income statement wh
A firm presents the following income statement, which complies with the standards under which it must report:
Based on the differences between U.S.GAAP and International Financial Reporting Standards, this firm:
A. must report any dividends received as operating cash flows.
B. is permitted to recognize upward revaluations of long-lived assets.
C. cannot have used LIFO as its inventory cost assumption.
参考解答
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2024-11-08 11:28:56
Ans:A.
The income statement shows an extraordinary item, which is permitted under U.S.GAAP but not under IFRS. From this we can conclude that the firm reports under U.S.GAAP. U.S.GAAP requires dividends received to be classified as CFO, while IFRS allows them to be classified as either CFO or CFI. A firm reporting under U.S.GAAP may not revalue assets upward by may use LIFO.
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