Which of the following most accurately lists the requirements regarding accounting for financing liabilities under U.S. GAAP and IFRS?
The effective interest method is required under IFRS. The effective interest or the straight line method may be used under U.S. GAAP.
The effective interest method is required under IFRS and preferred under U.S. GAAP. The straight-line method is also permitted under U.S. GAAP.
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