IASB Requires Companies to Use Which Method for Reporting Changes

question 38

Multiple Choice

IASB requires companies to use which method for reporting changes in accounting policies?

• A)cumulative effect approach
• B)retrospective approach
• C)prospective approach
• D)averaging approach

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Definitions:

Unstated Premise

A component of an argument that is not expressed but is assumed to be true for the argument to hold.

Millionaires

Individuals whose net worth or wealth is equal to or exceeds one million units of currency.

Disjunctive Premise

A premise in an argument that offers two or more mutually exclusive options, only one of which needs to be true.

Disjuncts

Disjuncts are the separate statements or propositions in a disjunction, any of which being true makes the disjunction true.