How Are IASB Requirements to Account for Joint Ventures Different

question 11

Multiple Choice

How are IASB requirements to account for joint ventures different from U.S.GAAP?

• A)International standards require the equity method, but U.S.GAAP allows for flexibility in accounting for joint ventures.
• B)U.S.GAAP requires the equity method, whereas the international standards require proportionate consolidation.
• C)IASB standards and U.S.GAAP are essentially the same for accounting for joint ventures.
• D)IASB standards do not specify which methods are allowed to account for joint ventures, whereas U.S.GAAP requires proportional consolidation.

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Definitions:

Power Distance

A cultural dimension that describes the extent to which individuals in a society accept that power in institutions and organizations is distributed unequally.

Cultural Differences

Variations in the values, beliefs, practices, and rituals among groups of people from different backgrounds.

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A collective decision-making process that seeks agreement and acceptance from all members of a group before proceeding.

Valued Knowledge

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