The IFRS statement of recognized income and expenses is identical to the U.S. GAAP statement of retained earnings - beginning balance retained earnings, plus net income, less dividends, equals ending balance retained earnings.

Question

Quizplus · Accepted Answer

The IFRS statement of recognized income and expenses focuses on recognizing gains and losses that are not reported in the income statement, while the U.S. GAAP statement of retained earnings focuses on changes in retained earnings due to net income and dividends. Therefore, the two statements are not identical.

The IFRS Statement of Recognized Income and Expenses Is Identical