Concept introduction:
International financial reporting framework (IFRS):
International
To choose:
The option that correctly describes International financial reporting framework.
Answer to Problem 1MCQ
b. IFRS consists only of standards that have been issued since the IASB was formed in 2001.
Explanation of Solution
Explanation for correct answer:
IFRS consists only of standards that have been issued since the IASB was formed in 2001. Hence correction option is b.
Explanation for incorrect answers:
a. IFRS does not describes the generally Accepted Accounting Policies used in U.S. Hence it is not the correct option.
c. IFRS are not considered more concept based than US GAAP. Hence it is not the correct option.
d. IFRS are already being used in United States. Hence it is not the correct option.
Want to see more full solutions like this?
Chapter A1 Solutions
Cornerstones of Financial Accounting
- compare key concepts of fi nancial reporting standards under IFRS and US generally accepted accounting principles (US GAAP) reporting systemarrow_forwardUS Generally Accepted Accounting Principles (‘US GAAP’) are slowly being aligned with: (a) International Financial Reporting Standards (‘IFRS’) (b) UK GAAP (c) European Accounting Standards (d) None of the above Which one of the above list is most correct?arrow_forwardThe ________ is attempting to harmonize accounting standards through issuing International Financial Reporting Standards (IFRS). A) BSC B) IOSCO C) IASB D) FASB E) GAAParrow_forward
- Discuss similarities and differences between the accounting treatment for U.S. GAAP and IFRS if any from the topic you selected.arrow_forwardGhana adopted IFRSs wholly in 2007, to replace the Ghana National Accounting Standards. State four (4) benefits that the country is expected to derive from adopting these international standards.arrow_forwardGlobally, accounting standards are developed based on different methods. It is generally agreed that the nature of accounting standards depends on the systems of regulation. It has been argued that there are two main systems of regulation. Required: Identify and explain the difference between the two systems of regulation, stating clearly which system you believe describes the International Financial Reporting Standards (IFRS)arrow_forward
- Globally, accounting standards are developed based on different methods. It is generally agreed that the nature of accounting standards depends on the systems of regulation. It has been argued that there are two main systems of regulation. Identify and explain the difference between the two systems of regulation, stating clearly which system you believe describes the international financial reporting standards (IFRS)arrow_forwardYou are required to discuss and report on methodologies usedwhen conducting Financial Reporting Research under the U.S. GAAP Process in comparison with the requirements of IFRSarrow_forwardIdentify and explain the difference between the two systems of regulation, stating clearly which system you believe describes the International Financial Reporting Standards (IFRS)arrow_forward
- What type of circumstances would drive an organization to comply with US Generally Accepted Accounting Principles (GAAP)? Choose all that apply. Lender reporting requirements International Financial Reporting Standards (IFRS) requirements Equity investor reporting requirements An audit by the internal revenue services (IRS)arrow_forwardReview the new revenue recognition guidance issued by the Financial Accounting Standards Board http://www.fasb.org/jsp/FASB/Page/ImageBridgePagecid=1176169257359 and answer the following questions. What is the new standard as of ASC 606? What does that mean to you? What are the recommended steps companies should follow to achieve the core principle? How does this change current GAAP standards? Who is required to adhere to this new standard?arrow_forwardThe independent, nonprofit organization that sets financial accounting and reporting standards for both public- and private-sector businesses that use generally accepted accounting principles (GAAP) in the United States is which of the following? A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual frameworkarrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning