GAAP vs IFRS question

CFA Level I
#1

I came across this question and I am having trouble understanding why this is the correct answer. Can someone point out the rules/reasons as to why answer B is correct?

In 2015, a company undertook the following two transactions:

  1. Borrowed money from an insurance company and pledged some of its production facilities as collateral for the loan.

  2. Entered into an agreement with a local construction company to build a new research facility at a fixed price. Construction is to begin by 1 January 2016 and be completed 31 December 2018.

A) US GAAP only the pledged borrowing must be disclosed

B) US GAAP, neither transaction must be disclosed

C) IFRS, Neither transaction must be disclosed.

The description says B is correct because under GAAP neither need to be disclosed while under IFRS, both have to be disclosed. Are there any specific reasons why? Or is this just something I have to remember?

Thanks!

#2

Just need to remember not understand the rational behind why. Like all IFRS vs. GAAP. Generally IFRS is more progressive and the international standard, USA aside.

#3

Thanks!