All of the following statements regarding accounting treatments for liabilities under u. s. gaap and ifrs are true except: accounting for bonds and notes under u. s. gaap and ifrs is similar. both u. s. gaap and ifrs require companies to distinguish between operating leases and capital leases. the criteria for identifying a lease as a capital lease are more general under ifrs. both u. s. gaap and ifrs require companies to record costs of retirement benefits as employees work and earn them. use of the fair value option to account for bonds and notes is not acceptable under u. s. gaap or ifrs.

Which of the following statements is not correct? the stock of publicly owned companies must generally be registered with and reported to a regulatory agency such as the sec. when stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an ipo," and the market for such stock is called the new issue or ipo market. "going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares. if you wanted to know what rate of return stocks have provided in the past, you could examine data on the dow jones industrial index, the s& p 500 index, or the nasdaq index.