Final answer:
The correct answer is B. iGAAP, known as IFRS, gives companies the choice between cash or share settlement for contracts that allow for either option, unlike U.S. GAAP which has strict rules. The FASB project suggests that the IASB may consider the U.S. method, but currently, no such requirement exists in iGAAP.
Step-by-step explanation:
While U.S. GAAP has specific rules regarding the settlement of contracts, International GAAP, known as IFRS (International Financial Reporting Standards), tends to allow for more flexibility. Under IFRS, if a contract can be settled in either cash or shares, the company has the option to choose the method of settlement unless the terms of the contract obligate one specific method.
In the context of the question, the FASB (Financial Accounting Standards Board) project has suggested that the IASB (International Accounting Standards Board) consider the approach used in U.S. GAAP. However, currently iGAAP, or IFRS, does not require that share settlement must be used; the choice between cash or share settlement is left to the policy of the individual company and the specific terms of the contract.