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IFRS permits the same depreciation methods as U.S GAAP, with the exception of the units-of-production method, which is not allowed under IFRS.

A. True
B. False

User EazyC
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1 Answer

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Final answer:

The claim that the units-of-production method is not allowed under IFRS is false (B); both IFRS and U.S GAAP allow this method as well as others for depreciation.

Step-by-step explanation:

The statement that IFRS permits the same depreciation methods as U.S GAAP, with the exception of the units-of-production method, which is not allowed under IFRS, is false. Both IFRS and U.S GAAP allow for several depreciation methods, including the straight-line method, diminishing balance method, and the units-of-production method.

It is a common misconception that the units-of-production method is not permitted under IFRS; however, this is not correct as IFRS does indeed permit this method. It is important for companies to choose a method that most accurately reflects the expected pattern of consumption of the asset's future economic benefits.

User Hyubs
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