Which of the following is false regarding the accounting for pensions under IFRS and U.S. GAAP?
A) Prior service cost is recognized on the balance sheet under U.S. GAAP only.
B) Under U.S. GAAP companies must amortize actuarial gains and losses over the expected service lives of employees.
C) Prior service cost is amortized into income over the expected service lives of employees under U.S. GAAP only.
D) Under IFRS companies may recognize actuarial gains and losses in income immediately.
Correct Answer:
Verified
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