Which Board(s) Believe(s) That Financial Statements Would Be More Understandable

question 97

Multiple Choice

Which board(s) believe(s) that financial statements would be more understandable if companies reported all financial statements at fair value?

• A) Both IASB and FASB
• B) Neither IASB nor FASB
• C) FASB, but not IASB
• D) IASB, but not FASB
• IFRS:

---

Definitions:

Cash Dividend

A distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Statement Of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Indirect Method

A technique used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to arrive at cash flow from operating activities.

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in the form of cash.