IFRS requires companies to disclose their accounting policies in the financial statements.

Both IFRS and GAAP require companies to disclose their depreciation methods in the financial statements.

Both GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards) require consistency in financial reporting.

Accrual Basis Accounting requires revenue to be recognized when earned, aligning with the revenue recognition principle.

Both GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards) require revenue to be recognized when it is earned.

GAAP (Generally Accepted Accounting Principles) requires that companies consistently apply their chosen inventory valuation method to ensure comparability.

Both IFRS and GAAP require consistent application of depreciation methods.

Both IFRS and GAAP require the preparation of a trial balance as part of the accounting process to ensure accuracy in financial reporting.

Both IFRS and GAAP require the use of a systematic and rational method of depreciation to allocate the cost of an asset over its useful life.

Both IFRS and GAAP do not explicitly require a trial balance, but it is a common practice in preparing financial statements.

Both IFRS and GAAP do not specifically require a trial balance, but it is a common practice in preparing financial statements.

IFRS 9 requires the use of fair value for certain financial instruments, impacting how these assets and liabilities are reported.

Both IFRS and GAAP require systematic and rational allocation of depreciation.

Net Present Value (NPV) takes into account the time value of money by discounting future cash flows.

The Straight-Line method allocates an equal amount of depreciation expense each year.

The Units of Production Method is best suited for assets with variable usage patterns, as it ties depreciation to actual usage.

The Units of Production Method is best suited for assets with variable usage, as it bases depreciation on actual usage.

The declining balance method is best for assets that lose value quickly as it accelerates depreciation.

The straight-line method is most suitable for assets with a consistent usage pattern, as it allocates the cost evenly over time.

The straight-line method is most suitable for assets with a predictable pattern of usage, as it allocates costs evenly.

The Declining Balance Method results in higher depreciation expenses in the earlier years due to its accelerated nature.

The Declining Balance Method is appropriate for assets like vehicles that experience higher usage and wear in the initial years.

The Declining Balance Method results in higher depreciation expenses in the early years compared to the Straight-Line Method.

The Declining Balance Method typically results in the highest total depreciation expense over an asset's life due to accelerated depreciation in the early years.

The Balance Sheet provides a snapshot of a company's financial position at a specific point in time.

The Balance Sheet provides information about a company's working capital by listing current assets and current liabilities.

LIFO stands for Last In, First Out, meaning the most recently purchased items are sold first.

FIFO (First In, First Out) assumes that the oldest inventory items are sold first.

LIFO results in higher COGS and thus lower net income during inflation, as it accounts for the most recent, higher costs first.

LIFO (Last In, First Out) can lead to lower taxes during inflation as it matches the most recent, higher costs against revenues.