Which set of accounting principles directly uses the term "reserve"?
A)Both IFRS and GAAP
B)GAAP but not IFRS
C)IFRS but not GAAP
D)neither IFRS nor GAAP

Question

Quizplus · Accepted Answer

IFRS uses the term "reserve" within its framework, particularly in the context of equity, where certain portions of equity are classified as reserves. GAAP, on the other hand, does not typically use the term "reserve" in the same context; it often uses terms like "allowance" or "provision" for similar concepts but does not classify these under equity as reserves.

Which Set of Accounting Principles Directly Uses the Term "Reserve