How do ifrs and us gaap differ in the approach

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Problem 1: How do IFRS and U.S. GAAP differ in their approach to allowing reversals of inventory write-downs?

Multiple Choice

Option 1: IFRS requires the reversal of write-downs from cost to net realization value (NRV) when the selling price increases. U.S. GAAP prohibits the reversal of past write-downs.

Option 2: If they had not been previously recorded as separate assets by the acquired company, they should always be recorded as "Goodwill" on the balance sheet of the company acquiring them.

Option 3: The cost of the intangibles should be expensed by the acquiring company on the merger date.

Option 4: They should be recorded as separate intangible assets only if their useful life is indefinite.

Reference no: EM132787467

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