Why Should Financial Analysts Endorse the Adoption of IFRS Worldwide

question 32

Multiple Choice

Why should financial analysts endorse the adoption of IFRS worldwide?

• A)It would eliminate differences in the financial statements of international companies.
• B)It would increase the comparability of financial statements across countries.
• C)It would increase the demand for the services of international financial analysts.
• D)The services of financial analysts would become more valuable to investors.

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Definitions:

Replacement Cost

The cost to replace an asset with another of similar function and quality in its current condition.

Historical Cost

The original monetary value of an asset or expense as recorded at the time of acquisition or incurrence, without adjusting for inflation or changes in value.

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties, not involving forced sale or liquidation.

Weighted Average

A mathematical calculation that takes into account both the magnitude and the significance of each number in a set to find an average value weighted by importance or size.