All of the following are key similarities between GAAP and IFRS with respect to accounting for investments except:

(a) IFRS and GAAP require the same accounting for equity securities.

(b) IFRS and GAAP apply the equity method to signifi -

cant infl uence equity investments.

(c) IFRS and GAAP have a fair value option for fi nancial instruments.

(d) the accounting for impairment of investments is similar, although IFRS allows recovery of impairment losses.