Asked by Rheanna Chase on Jul 21, 2024
Verified
IFRS differ from U.S.GAAP regarding the indirect effects of a change in accounting principle in that IFRS
A) do not specify when the indirect effects should be reported or what disclosures are required
B) do not specify when the indirect effects should be reported
C) do not specify what disclosures are required
D) specify when the indirect effects should be reported and what disclosures are required
Indirect Effects
Consequences of an action that are not immediately apparent or directly linked to the action but occur as a secondary effect.
Accounting Principle
Fundamental guidelines or rules that govern how financial transactions and events are recorded and reported in financial statements.
IFRS
International Financial Reporting Standards; a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.
- Distinguish between GAAP and IFRS accounting standards and their requirements for error corrections and retrospective restatements.
Verified Answer
Learning Objectives
- Distinguish between GAAP and IFRS accounting standards and their requirements for error corrections and retrospective restatements.
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