Which of the Following Statements Most Accurately Reflects the Approach

question 48

Multiple Choice

Which of the following statements most accurately reflects the approach the FASB and IASB have identified for reaching convergence of U.S.and international accounting standards?

• A) Convergence will be achieved primarily by modifying FASB standards to conform with IASB standards.
• B) Convergence will be achieved primarily by modifying IASB standards to conform with FASB standards.
• C) FASB and IASB will create new standards rather than trying to eliminate differences between standards that are in need of significant improvement.
• D) FASB and IASB will try to eliminate differences between standards by eliminating differences between existing standards of the two standard-setting bodies that can be easily resolved and will then work jointly on more complex issues.

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Definitions:

Normative Control

Control that gets subunits to adhere to the values of the organization.

Human Interaction

The communication and relationships between people, whether in person or through digital means.

Output Control

Control that focuses on profitability and/or market share.

Profitability

The degree to which a business or activity yields profit or financial gain.