How Are IASB Requirements to Account for Joint Ventures Different

question 12

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 allow for 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:

Long-Term Memory

The part of the information-processing system that holds memories of past experiences.

Information-Processing Theorists

Scholars who study how humans mentally process information from their environment, drawing analogies with computer processing.

Short-Term Memory

The part of the memory system where information is stored for a short duration, typically seconds to minutes, without rehearsal.

Information-Processing Theorists

Scholars who study how humans mentally process and store information, drawing analogies to computer processing.