Which of the following statements regarding the equity method of accounting is false?

1. U.S. GAAP requires that accounting policies be conformed between the investor and the investee, while conforming policies is not permitted under IFRS.
2. U.S. GAAP provides for a fair value option for an equity method investment where subsequent changes in fair value are reported in earnings rather than using the equity method.IFRS generally does not allow for the use of the fair value option for associates aside from certain entities such as VC organizations and mutual funds.
3. U.S. GAAP uses the term equity method investee where IFRS refers to the investee as associate.
4. IFRS and US GAAP both use the equity method of accounting for entities over which the investor has significant influence and operate with the general rebuttable presumption that 20% or more voting interest results in significant influence.