ASPE and IFRS differ in their treatment of long-term Bonds Payable in that:
A)The straight-line method may be used under ASPE but not under IFRS.
B)ASPE ignores foreign exchanges gains and losses.
C)IFRS does not account for foreign exchange gains and losses on Bonds Payable.
D)Under IFRS, exchange gains and losses on short-term debt are recorded in the income statement immediately.

Question

Quizplus · Accepted Answer

Under ASPE, the straight-line method can be used for amortizing bond premiums or discounts, whereas IFRS requires the effective interest method.

ASPE and IFRS Differ in Their Treatment of Long-Term Bonds