A major way in which IFRS differs from GAAP that will affect the design of a company's general ledger and reporting system is an IFRS principle known as
A)componentization.
B)monetization.
C)securitization.
D)centralization.

Question

Quizplus · Accepted Answer

Componentization is an IFRS principle that requires a company to recognize and report each significant part or component of an asset separately. This is different from GAAP, which allows companies to recognize assets as a whole. As a result, a company using IFRS will need to design its general ledger and reporting system to capture and report information on each component of its assets separately.

A Major Way in Which IFRS Differs from GAAP That