The transition to International Financial Reporting Standards can be seen as enhancing which of the following qualitative characteristics?
A)Verifiability
B)Comparability
C)Understandability
D)Timeliness

Question

Quizplus · Accepted Answer

The transition to International Financial Reporting Standards (IFRS) enhances comparability because it promotes the use of a unified set of accounting standards, allowing for easier comparison of financial statements of companies operating in different countries. While IFRS also improves other qualitative characteristics, such as verifiability, understandability, and timeliness, the strongest impact is on comparability.

The Transition to International Financial Reporting Standards Can Be Seen