Which of the following statements is true concerning how derecognition of receivables is treated under IFRS and U.S. GAAP?

Question

Quizplus · Accepted Answer

While U.S. GAAP and IFRS both require certain criteria to be met for derecognition of receivables, U.S. GAAP does permit partial derecognition while IFRS does not. Additionally, the criteria used for derecognition is different between the two standards. Under IFRS, the criteria includes a combination of risks and rewards and loss of control, while under U.S. GAAP, risks and rewards are the primary criterion. Therefore, only statement B is true.

Which of the Following Statements Is True Concerning How Derecognition