Which Statement About the Differences Between Consolidation Methods Permitted Under

Multiple Choice

Which statement about the differences between consolidation methods permitted under US GAAP and IFRS is true?

A) IFRS and US GAAP both require the use of the entity theory.
B) IFRS and US GAAP both require the use of the parent company extension theory.
C) IFRS permits either the entity theory or the parent company extension theory; US GAAP requires the entity theory.
D) IFRS permits either the entity theory or the parent company extension theory; US GAAP requires the parent company extension theory.