Answer:
E. Both require that the expense related to uncollectibles be recorded when the receivable is determined to be uncollectible.
Explanation:
GAAP is an acronym for Generally Accepted Accounting Principles, it comprises of the accounting standard, procedures and principles used by public institutions in the United States of America. The U.S GAAP is issued by the Financial Accounting Standards Board (FASB) and adopted by the U.S. Securities and Exchange Commission (SEC).
IFRS is an acronym for International Financial Reporting Standards, it comprises of a set of accounting standards or rules issued by the International Accounting Standards Board (IASB). The International Financial Reporting Standards ensures that statement of income, when reported by accountants is consistent, transparent and comparable globally.
Also, there are notable similarities between the U.S GAAP and IFRS, these are;
1. Both require the allowance method for uncollectibles unless uncollectibles are immaterial.
2. Both require that receivables be reported net of estimated collectibles.
3. Both require that the expenses for estimated collectibles be recorded in the same period revenues generated from those receivables are recorded.
4. Both allow using percent of sales, percent of receivables, or aging of receivables to estimate uncollectibles.
