Challenges to Convergence of IFRS with U

question 51

Multiple Choice

Challenges to convergence of IFRS with U.S. GAAP include all of the following except

• A) cultural differences exist between countries.
• B) the litigious environment in the U.S. is best suited to very detailed standards.
• C) legal barriers to change include the difficulty associated with changing loan covenants.
• D) political issues result in politicians setting the final accounting standards.

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Definitions:

Frost Wedging

Process by which jointed rock is pried and dislodged by the expansion of ice during freezing.

Weathered Limestone

Limestone that has undergone chemical or physical breakdown by weathering processes, changing its texture and composition.

Dissolution

The process by which a material is dissolved.

Weathering Type

Classification of the processes by which rocks and minerals are broken down into smaller pieces and changed chemically under Earth's surface conditions, including physical, chemical, and biological weathering.