In addition to disclosing judgments involving estimates and assumptions, ________ requires that companies disclose judgments made when determining appropriate accounting treatments.
A.
IFRS
B.
U.S. GAAP
C.
both A & B
D.
neither A nor B
answer C
The correct answer is C, both A (IFRS) and B (U.S. GAAP). Both IFRS (International Financial Reporting Standards) and U.S. GAAP (Generally Accepted Accounting Principles) require companies to disclose judgments made when determining appropriate accounting treatments.
To arrive at this answer, we can consider the question and eliminate certain options. The question asks about requirements for disclosing judgments made when determining appropriate accounting treatments.
Option D states that neither IFRS nor U.S. GAAP require such disclosure. However, this is not correct, as both IFRS and U.S. GAAP have disclosure requirements in this area.
Option A states that only IFRS requires such disclosure. This is also not correct, as U.S. GAAP also has similar requirements.
Option B states that only U.S. GAAP requires such disclosure. This is also incorrect, as IFRS also has similar requirements.
Therefore, the correct answer is C, both A (IFRS) and B (U.S. GAAP).