Why Is It Difficult to Compare IAS 18, Revenue, to U.S.GAAP

question 34

Multiple Choice

Why is it difficult to compare IAS 18, Revenue, to U.S.GAAP?

• A)The IASB definition of revenue is very complicated, whereas the definition of revenue under U.S.GAAP is straightforward.
• B)Revenue is not defined under U.S.GAAP.
• C)There is no single standard in U.S.GAAP that deals solely with revenue.
• D)Under U.S.GAAP, revenue is defined in terms of cash, whereas IAS 18 defines revenue in terms of a variety of resources.

---

Definitions:

Economical

Characterized by efficiency of resource use, often aiming to minimize cost while maximizing output.

Concisely

In a manner that is brief but comprehensive and clear, using as few words as necessary.

Receiver's Perspective

Considering the point of view and understanding of the person who receives the communication.

Feedback

Information given to someone about their performance or work, intended to guide future improvements.