Significant differences between IFRS and Chinese GAAP include all of the following except:

Question

Quizplus · Accepted Answer

The option that is incorrect is C because it states that Chinese GAAP follows the cost principle while IFRS allows for revaluations and recoveries of impairment losses, but it is the opposite. IFRS follows the cost principle while Chinese GAAP allows for revaluations and recoveries of impairment losses. The other options are correct: A states that Chinese GAAP allows the use of LIFO while IFRS prohibits it, B states that Chinese GAAP has different related party disclosure requirements, and D states that Chinese GAAP uses the equity method of accounting for jointly controlled entities while IFRS also allows proportionate consolidation.

Significant Differences Between IFRS and Chinese GAAP Include All of the Following