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Which of the following best describes international financial reporting standards? IFRS describe the generally accepted accounting principles that arc currently used by all companies in the United States. IFRS consist only of standards that have been issued since the IASB was formed in 2001. IIRS arc considered to be more concept-based than U.S. GAAP. IFRS will be required to be used in the United States beginning in 2020.

BuyFind

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881
BuyFind

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881

Solutions

Chapter
Section
Chapter A1, Problem 1MCQ
Textbook Problem

Which of the following best describes international financial reporting standards?

  • IFRS describe the generally accepted accounting principles that arc currently used by all companies in the United States.

  • IFRS consist only of standards that have been issued since the IASB was formed in 2001.

  • IIRS arc considered to be more concept-based than U.S. GAAP.

  • IFRS will be required to be used in the United States beginning in 2020.

Expert Solution
To determine

Concept introduction:

International financial reporting framework (IFRS):

International financial reporting framework is the accounting framework/ accounting standards followed internationally to prepare the financial statements. IFRS are issued by the International Accounting Standards Board (IASB). IFRS fulfill the objective of common accounting standards worldwide.

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.

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