Final answer:
The statement in question is actually correct; IFRS does require specific minimum items to be presented on the income statement. GAAP also has its own set of presentation requirements, which may differ from IFRS.
Step-by-step explanation:
The statement that IFRS identifies certain minimum items that should be presented on the income statement is actually correct, not incorrect. The International Financial Reporting Standards (IFRS) do specify minimum line items that must be present in the financial statements, including the income statement. This includes items like revenue, finance costs, share of profits and losses of associates and joint ventures, tax expense, and profit or loss, among others. Each of these items provides crucial information to users of the financial statements and helps in making economic decisions.
Conversely, U.S. Generally Accepted Accounting Principles (GAAP) have their own set of requirements for the presentation of the income statement. The GAAP also lists certain expenses to be shown separately and has guidelines on how items should be classified and presented. It's important to note that while IFRS and GAAP share some commonalities, they also have key differences in their requirements.
Reporting under IFRS versus GAAP could result in different presentations of the same financial information, which is why understanding these differences is important for stakeholders who utilize these financial statements.
The complete question is: IFRS identifies certain minimum items that should be presented on the income statement is an incorrect statement. GAAP...: is: