Which of the Following Entity-Wide Disclosures Is NOT Required Under

question 20

Multiple Choice

Which of the following entity-wide disclosures is NOT required under both IFRS 8 and U.S.GAAP?

• A)Information about products and services
• B)Information about intersegmental transfer pricing
• C)Information about major customers
• D)Information about geographic areas

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Definitions:

Ability-To-Pay Principle

The concept that taxes should be levied according to an individual's or entity's ability to bear them, typically resulting in higher earners paying more taxes.

Lump-Sum Taxes

Taxes that are a fixed amount, not dependent on the taxpayer's income or activities, thus they do not distort economic decisions.

Economic Efficiency

A condition where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Ability-To-Pay Principle

The ability-to-pay principle in taxation suggests that taxes should be levied based on an individual's or entity's capacity to pay, meaning those with higher income should pay more.