European companies rely
A) less on historical cost and more on fair values than U.S. companies.
B) less on fair values and more on historical cost than U.S. companies.
C) completely on fair values for financial reporting.
D) completely on historical cost for financial reporting.

Question

Quizplus · Accepted Answer

European companies, under International Financial Reporting Standards (IFRS), tend to use fair value accounting more extensively than U.S. companies, which have traditionally relied more on historical cost accounting under U.S. Generally Accepted Accounting Principles (GAAP).

European Companies Rely