All of the following regarding accounting for treasury stock under u. s. gaap and ifrs is true except: 1-only gains are recognized on retirements of treasury stock under ifrs.
2-gains are not recognized on retirements of treasury stock under u. s. gaap.
3-ifrs applies the principle that companies do not record gains or losses on transactions involving their own stock.
4-u. s. gaap applies the principle that companies do not record gains or losses on transactions involving their own stock.
5-a company's assets and equity are always reduced by the amount paid for the retiring stock.