The International Financial Reporting Standards (IFRS)apply to Canadian public companies.How does that affect comparability of financial statements across countries?
A)It achieves greater comparability in the short term only.
B)It achieves greater comparability in the long term.
C)IFRS is not intended to improve comparability.
D)IFRS coordinates only a few changes in financial reporting standards.

Question

Quizplus · Accepted Answer

The adoption of IFRS by Canadian public companies improves comparability of financial statements across countries in the long term. Since IFRS are globally accepted accounting standards, it allows investors to compare financial information across different countries which increases transparency and reduces the information gap.

The International Financial Reporting Standards (IFRS)apply to Canadian Public Companies