Which of the following statements,regarding International Financial Reporting Standards (IFRS),is correct?
A) International Financial Reporting Standards are issued by the Financial Accounting Standards Board.
B) The Securities and Exchange Commission is the private organization that oversees the creation and governance of International Financial Reporting Standards.
C) International Financial Reporting Standards represent a set of global accounting standards that are generally more specific and based less on principle than U.S. Generally Accepted Accounting Principles.
D) Companies who are incorporated in or do significant business in another country might be required to publish financial statements using International Financial Reporting Standards.

Question

Quizplus · Accepted Answer

International Financial Reporting Standards (IFRS) are a set of global accounting standards developed by the International Accounting Standards Board (IASB) and are used in many countries around the world, including those in the European Union, Australia, and Canada. Companies who are incorporated in or do significant business in these countries might be required to publish financial statements using IFRS. Option A is incorrect because IFRS are not issued by the Financial Accounting Standards Board (FASB), which is responsible for setting accounting standards in the United States. Option B is also incorrect as the Securities and Exchange Commission (SEC) oversees the financial reporting of public companies in the United States and requires them to follow U.S. Generally Accepted Accounting Principles (GAAP). Option C is incorrect as IFRS are generally based on principles rather than rules or specific guidelines, which is the opposite of what the statement suggests.

Which of the Following Statements,regarding International Financial Reporting Standards (IFRS),is