CFA CFA Level 1 CFA Level 1 Question of the Week – Financial Reporting and Analysis

CFA Level 1 Question of the Week – Financial Reporting and Analysis

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    • Avatar of Matt_AnalystPrepMatt_AnalystPrep
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        The correct answer is A.

        Under IFRS each asset
        must be depreciated separately. US GAAP does not require component
        depreciation.
         US GAAP does not require component depreciation. There is an explicit requirement under IFRS to review the residual value and useful life of an asset on an annual basis, and IFRS does not prescribe a particular method for computing depreciation.

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