A major way in which IFRS differs from GAAP that will affect the design of a company's general ledger and reporting system is an IFRS principle known as
A) componentization.
B) monetization.
C) securitization.
D) none of the above

Question

Quizplus · Accepted Answer

Componentization is a principle unique to IFRS that requires companies to recognize individual components of an asset separately, rather than as a single asset. This can have significant impacts on a company's general ledger and reporting system as they may need to track and report on individual components separately, which may require changes in accounting systems and procedures. Monetization and securitization are not specific principles of either GAAP or IFRS.

A Major Way in Which IFRS Differs from GAAP That