All of the following regarding accounting for Treasury Stock under U.S.GAAP and IRFS is true except:
A)U.S.GAAP applies the principle that companies do not record gains or losses on transactions involving their own stock.
B)Only gains are recognized on retirements of treasury stock under IFRS.
C)IFRS applies the principle that companies do not record gains or losses on transactions involving their own stock.
D)Gains are not recognized on retirements of treasury stock under U.S.GAAP.
E)A company's assets and equity are always reduced by the amount paid for the retiring stock.

Question

Quizplus · Accepted Answer

Under IFRS, both gains and losses are recognized on retirement of treasury stock, whereas only losses are recognized under U.S.GAAP. All other statements regarding accounting for Treasury Stock under U.S.GAAP and IFRS are true.

All of the Following Regarding Accounting for Treasury Stock Under