When companies switch from GAAP to IFRS,their financial ratios would not be expected to change significantly.

Question

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When companies switch from GAAP to IFRS, there may be significant changes in their financial ratios due to differences in accounting treatments between the two standards. For example, the treatment of leases, pension obligations, and revenue recognition may all impact financial ratios differently under IFRS compared to GAAP.

When Companies Switch from GAAP to IFRS,their Financial Ratios Would