ASPE Requires Less Information on the Financial Statements of Private

question 57

Multiple Choice

ASPE requires less information on the financial statements of private companies than IFRS requires because

• A) private companies are smaller than public companies.
• B) users of private company financial statements have the ability to obtain additional information from the company if required.
• C) public companies have their information available on the internet.
• D) public companies may report in different foreign currencies.

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Definitions:

Anchoring with Adjustment

A cognitive bias where initial information serves as an anchor and subsequent decisions are adjusted around this anchor, though often not enough.

Expression

The process of making known one's thoughts or feelings through words, gestures, or artistic mediums.

Influence

The capacity or power of individuals or things to be a compelling force on the actions, behavior, opinions, or development of others.

Loss and Risk Aversion Heuristic

A cognitive bias where people prefer to avoid losses rather than acquiring equivalent gains, indicating a greater sensitivity to losses over gains.