Under International Financial Reporting Standards (IFRS)
A) The cash-basis method of accounting is accepted.
B) Events are recorded in the period in which the event occurs.
C) Net income will be lower under the cash-basis than accural-basis accounting.
D) All of the choices are correct.

Question

Quizplus · Accepted Answer

Under IFRS, events are recorded in the period in which they occur, rather than when cash is received or paid out. This is known as accrual-basis accounting. The cash-basis method of accounting is not accepted under IFRS. While net income may be lower under cash-basis accounting, this is not a universally applicable statement and may vary depending on the specific situation.