You have just been hired as a junior accountant for Norman, Inc., a manufacturer of novelties and party favors.

You have just been hired as a junior accountant for Norman, Inc., a manufacturer of novelties and party favors. Norman recently realized a large gain on the sale of investments at the beginning of the second quarter. Management now wants to report one-third of the gain in each of the remaining quarters. How would GAAP look at this in comparison to IFRS?