Final answer:
The statement is false (B); while both IFRS and U.S. GAAP generally consider the 20% to 50% ownership test for significant influence to use the equity method, they differ in additional criteria and application.
Step-by-step explanation:
The statement that both IFRS (International Financial Reporting Standards) and U.S. GAAP (Generally Accepted Accounting Principles) use the same test to determine whether the equity method of accounting should be used is False. Under the equity method, an investor recognizes its share of the profits and losses of an investee that it can significantly influence. The criterion for significant influence is usually met by owning 20% to 50% of the voting shares.
However, there are differences in additional guidance and specific criteria between IFRS and U.S. GAAP that must be considered in practice. For example, IFRS considers potential voting rights that are substantive when assessing significant influence, while U.S. GAAP focuses on the existing ownership percentage and other factors like board representation, participation in policy-making processes, and material transactions between the investor and investee.