Which of the Following Is True Regarding a Comparison of the Law

question 27

Multiple Choice

Which of the following is true regarding a comparison of the law of the United States and the law of the European Union?

• A) Laws of the United States and the European Union differ in regard to consumer privacy and emissions standards but are similar in regard to chemical usage and accounting standards.
• B) Laws of the United States and the European Union differ in regard to consumer privacy, emissions standards, and chemical usage but are similar in regard to accounting standards.
• C) Laws of the United States and the European Union differ in regard to consumer privacy, emissions standards, chemical usage, and accounting standards.
• D) Laws of the United States and the European Union are similar in all significant areas involving business regulation and vary in only minor respects.

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Definitions:

AASB 12/IFRS 12

Refers to the disclosure of interests in other entities, providing requirements on the disclosure of interests in subsidiaries, joint arrangements, associates, and unconsolidated structured entities.

Unrecognised Share of Losses

Losses attributable to an investor’s share in an investee that are not reflected in the investor’s financial statements because they exceed the investor's interest in the investee’s equity.

Discontinued Use

Refers to the cessation of operations or production of a segment or unit within a business.

Equity Method

An accounting technique used to record an investor’s proportional share of an associate company’s earnings or losses on its financial statements.