Which of the following is not a reason preparers of financial statements need to make choices about which accounting policies to use?
A) Some aspects of financial reporting practice are not covered by specific accounting standards
B) Some standards have alternative policies with no clear indication of the proper criteria to be used
C) Judgements are to be made for certain issues, such as useful life, depreciation, and allowance for doubtful debts
D) The IASB is attempting to converge accounting policies with other worldwide accounting standards setters

Question

Quizplus · Accepted Answer

The fact that the IASB is attempting to converge accounting policies with other worldwide accounting standards setters is not a reason for preparers of financial statements to make choices about which accounting policies to use, but rather an external factor that can influence the development and implementation of these policies. Choices about accounting policies need to be made because some aspects of financial reporting practice are not covered by specific accounting standards, some standards have alternative policies with no clear indication of the proper criteria to be used, and judgements are required for certain issues, such as useful life, depreciation, and allowance for doubtful debts.

Which of the Following Is Not a Reason Preparers of Financial