CMA Exam Practice Questions

Question 1:

Regarding property, plant, and equipment (PPE), which statement highlights a key difference between U.S. GAAP and IFRS?

A. U.S. GAAP allows revaluation upwards; IFRS strictly prohibits it.

B. IFRS permits revaluation to fair value; U.S. GAAP generally prohibits it.

C. Both mandate annual revaluation of PPE to fair value.

D. U.S. GAAP allows revaluation for some PPE; IFRS for all.

Correct Answer: B. IFRS permits revaluation to fair value; U.S. GAAP generally prohibits it.

IFRS allows companies to choose a revaluation model for