Which one of the following statements about internal performance reporting is correct? Internal performance reports
A)are subject to the requirements of the international financial reporting standard on performance reporting
B)are always prepared in accordance with balanced scorecard principles
C)are produced solely for use within the organization
D)are required only in decentralized organizations

Question

Quizplus · Accepted Answer

Internal performance reports are produced solely for use within the organization, for the purpose of monitoring and improving the organization's performance. They may be prepared using various methods, such as budget reports or performance dashboards, and may or may not follow balanced scorecard principles. They are not subject to the requirements of the international financial reporting standard, which applies only to external financial reporting. Internal performance reporting is relevant for both centralized and decentralized organizations.

Which One of the Following Statements About Internal Performance Reporting