What has the accounting profession adopted to guide the practice of financial accounting in order to provide external shareholders with relevant, reliable, consistent, and comparable financial information?
A) Formal Accounting Rules and Procedures (FARP)
B) Standardized Accounting Procedures (SAP)
C) International Financial Reporting Standards (IFRS)
D) International Accounting Financial Rules (IAFR)

Question

Quizplus · Accepted Answer

The accounting profession has adopted International Financial Reporting Standards (IFRS) as a set of standardized accounting rules and regulations that guide the practice of financial accounting. These standards ensure that financial information provided to external shareholders is relevant, reliable, consistent, and comparable across different companies and industries. FARP and SAP are not recognized or widely used accounting standards or procedures. IAFR is not a recognized accounting framework.

What Has the Accounting Profession Adopted to Guide the Practice