Under IFRS Firms Are Encouraged to Use the Direct Method

question 36

True/False

Under IFRS firms are encouraged to use the direct method.The result is that firms that follow IFRS rarely use the indirect method of presenting cash flows from operating activities.

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Definitions:

Import Quotas

Limits set by a government on the amount or number of goods that can be imported into a country over a set period of time.

Foreign Sovereign Immunities Act

A U.S. law that sets limitations on lawsuits against foreign governments in U.S. courts, establishing certain conditions under which foreign sovereigns are not immune from litigation.

Jurisdiction

The authority given to a legal body to administer justice within a defined field of responsibility.

ICJ

Stands for the International Court of Justice, which is the principal judicial organ of the United Nations, responsible for settling legal disputes between states and giving advisory opinions.