The significant judgments related to debt depend on specific accounting rules (U.S. or international) that the company is following.

Question

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The accounting rules followed by a company determine how debt is recognized and reported on the financial statements, which can impact significant judgments related to the debt. Differences between U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) can also impact how debt is accounted for. Therefore, the statement is true.

The Significant Judgments Related to Debt Depend on Specific Accounting