Which statement about the differences between consolidation methods permitted under US GAAP and IFRS is true?
A) IFRS and US GAAP both require the use of the entity theory.
B) IFRS and US GAAP both require the use of the parent company extension theory.
C) IFRS permits either the entity theory or the parent company extension theory; US GAAP requires the entity theory.
D) IFRS permits either the entity theory or the parent company extension theory; US GAAP requires the parent company extension theory.

Question

Quizplus · Accepted Answer

Under IFRS, both entity theory and parent company extension theory are permitted for consolidation, whereas under US GAAP only the entity theory is accepted.

Which Statement About the Differences Between Consolidation Methods Permitted Under