Question

A U.S. company has many foreign subsidiaries and wants to convert its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the opening IFRS balance sheet? Measuring asset impairment. Classifying extraordinary items. Sale and leaseback gain recognition. Measuring salaries expense. Prior service cost recognition for pension amendments.

Answer 1

Answer: the correct answer is measuring salaries expense

Explanation: US GAAP means Generally Accepted Accounting Principles.

The primary difference between the two systems is that GAAP is rules-based and IFRS is principles-based. GAAP does not allow for inventory reversals, while IFRS permits them under certain conditions. Another key difference is that GAAP requires financial statements to include a statement of comprehensive income.