The Goal of the Boards of the IASB and FASB

question 50

Multiple Choice

The goal of the boards of the IASB and FASB is to develop a joint conceptual framework project that is both complete and internally consistent.However, as a limitation the boards concluded that

• A)a comprehensive reconsideration of all concepts underlying financial reporting would slow the progress but would be a necessary use of their time
• B)the project would have to be split into four phases and worked on one at a time
• C)the project would have to be split into eight phases, and all phases would be worked on simultaneously
• D)a comprehensive reconsideration of all concepts underlying financial reporting would not be an efficient use of their time

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the amount of it that producers are willing to supply.

Bond Rating Agencies

Independent firms that assess the creditworthiness of both debt securities and their issuers.

Restrictive Covenants

Clauses in contracts that restrict certain actions of the parties involved to protect business interests.

Default Risk

The likelihood that a borrower will be unable to make required debt payments.