What Is a Possible Danger If Politics Plays Too Big

question 15

Multiple Choice

What is a possible danger if politics plays too big a role in developing IFRS?

• A) Financial reporting standards that are issued that are not truly generally accepted.
• B) Individuals may influence the standards.
• C) User groups become active.
• D) The IASB delegates its authority to elected officials.

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Definitions:

Facilitation Payments

Small payments made to expedite administrative processes or government approvals, often considered a form of bribery in many jurisdictions.

Government Officials

Individuals appointed or elected to positions of authority within government structures to oversee and implement laws and policies.

Mortgage Payments

Regular payments made towards a loan taken to purchase property, typically consisting of principal and interest components.

Down Payments

An initial payment made when purchasing something on credit, representing a portion of the total price, with the balance to be paid over time.