IFRS and GAAP use similar approaches when it comes to the disposal of assets and the subsequent gain or loss. The only difference is GAAP requires the use of the reevaluation method.

Question

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IFRS and GAAP approach the disposal of assets and the calculation of gain or loss in similar ways, but GAAP does not require the use of the reevaluation method. Instead, GAAP allows for either the cost or fair value method to be used.

IFRS and GAAP Use Similar Approaches When It Comes to the Disposal