All of the Following Statements Are True Regarding IASB's Guideline

question 46

Multiple Choice

All of the following statements are true regarding IASB's guideline that companies must demonstrate change in accounting policy as preferable or as an improvement, except:

• A)Diversity in situations and characteristics of the items encountered in practice require the use of professional judgment.
• B)Changes in accounting policy are appropriate only when a company demonstrates that the newly adopted generally accepted accounting policy is more relevant and reliable than the existing one.
• C)Changes in accounting policy are appropriate only when a company demonstrates an improved income tax effect alone.
• D)None of these; all statements are true.

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Definitions:

Creative Self-efficacy

The belief in one's capabilities to produce creative outcomes.

Creative Solution

An innovative or imaginative approach to solving a problem or overcoming a challenge.

Technical Definition

A precise explanation of a term or concept that is specific to a particular field or industry.

Problem

Gap between what exists and what you want to exist.