What is the primary difference between US GAAP and IFRS

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Question - When a loan covenant in a long-term obligation is violated, what is the primary difference between US GAAP and IFRS when determining whether the loan will retain its long-term classification?

A. To retain its long-term classification, US GAAP requires the waiver to be received before year-end, while IFRS requires the waiver to be received before the financial statements are issued.

B. There is no difference because both require the company to receive a waiver from the bank before year end for the loan to retain its long-term classification.

C. There is no difference because both require the company to receive a waiver from the bank before the financial statements are issued for the loan to retain its long-term classification.

D. To retain its long-term classification, US GAAP requires the waiver to be received before the financial statements are issued, while IFRS requires the waiver to be received before year-end.

Reference no: EM132913327

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