Question

4) [True or False] The two major standard-setting organizations in the world are the International Accounting Standards Board (IASB) and International Organization of Securities Commission (IOSCO)

5) [True or False] IFRS is considered more comprehensive than U.S. GAAP and the standards contain more implementation guidance than U.S. GAAP.

6) [True or False] The International Accounting Standards Board (IASB) follows specific steps in developing International Financial Reporting Standards (IFRS); the first step in the process is holding a public hearing.

7) [True or False] Accounting standards are now less likely to require the recording or disclosure of fair value information due to its inherent subjectivity.

8) What would be an advantage of having all countries adopt and follow the same accounting standards?

Consistency

Comparability

Lower preparation costs

Comparability and lower preparation costs

Answer 1

1) False, The two key standard-setting bodies are International Accounting Standards Board (IASB), and Financial Accounting Standards Board (FASB).

2) False, At the conceptual level, IFRS is considered more of a principles-based accounting standard in contrast to GAAP, which is considered more rules-based. This disconnect manifests itself in specific details and interpretations. Basically, IFRS guidelines provide much less overall detail than GAAP.

3) False, The International Accounting Standards Board (IASB) follows specific steps in developing International Financial Reporting Standards (IFRS); this is not the first step in the process is holding a public hearing.

4) False, Accounting standards are now less likely to require the recording or disclosure of fair value information due to its inherent subjectivity. Incorrect statement.

5) d) Comparability and lower preparation costs is the correct answer