Question

Which of the following statements is true?

A. The FASB reports to the IASB

B. IFRS is objectively superior to US GAAP

C. The IASB derives its authority from the United Nations

D. The IASB is comprised of members representing various countries around the world

Answer 1

A.The FASB reports to the IASB

False.  The Financial Accounting Standards Board(FASB) is an independant non profit organisation responsible for establishing accointing and financial reporting standards for companies and non profit organisations in United States ,following US GAAP(Generally accepted accounting principles).

B.IFRS is objectively superior to US GAAP

False. IFRS and US GAAP are two sets of accounting standards,IFRS is principle based accounting standards where US GAAP is rules based. Both have advantages and disadvantages..They are not superior to each other.

C.The IASB derives its authority from the United Nations.

False. The International Accounting Standard Board(IASB) is the Independent accounting standard setting body of the IFRS Foundations(International Financing Reporting Standards).

D.The IASB is comprised of members representing various countries around the world.

True. The IASB comprises of 14 members from various countries with different backgrounds in acounting,auditing and finance. It establishes IFRS(International Financing Reporting Standards) which are accepted theoughout the world.