Which of the Following Are Reasons Why the IASC Felt

question 23

Multiple Choice

Which of the following are reasons why the IASC felt that agriculture was an industry that needed its own industry specific standard?
I. Agriculture was considered to be an emerging industry at that time.
II. The specific exclusion of assets related to agricultural activity from other standards.
III. The nature of agricultural activity had created uncertainty or conflicts when applying traditional accounting models.
IV. Accounting guidelines for agricultural activity previously developed by national standard setters had been piecemeal.

• A) I, II and III
• B) I, III and IV
• C) II, III and IV
• D) III and IV only

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Definitions:

Net Income

The amount of earnings left over after all expenses and taxes have been subtracted from total revenue.

Dividends

Payments made by a corporation to its shareholders, out of its profit or reserves, usually on a regular basis.

Investment

The allocation of resources, usually money, in order to earn income or profit over time.

Partial Equity Method

An accounting method used when an investing company has significant influence over, but not full control of, another company, requiring the investor to record its share of profits.