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.

---

Definitions:

Adequate

Adequate describes a condition or quality of being sufficient, acceptable, or satisfactory for a specific requirement or purpose.

Explanandum

The phenomenon or event that is to be explained in a scientific inquiry.

Uninformative

Providing no useful or relevant information.

Implausible

Not seeming reasonable or probable; failing to convince.