IASB and FASB Initiated a Joint Project to Clarify the Principle

question 4

Multiple Choice

IASB and FASB initiated a joint project to clarify the principle for recognising revenue and develop a common revenue standard for IFRS and US GAAP so as to:

• A) remove inconsistencies and weaknesses in existing revenue requirements.
• B) provide a more robust framework for addressing revenue issues.
• C) simplify the preparation of financial statements.
• D) All of the given answers are correct.

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Definitions:

Stock Price

The cost of purchasing a share of a company, determined by the supply and demand in the stock market.

Forward Contract

A financial contract between two parties to buy or sell an asset at a predetermined future date and price.

Future Date

A specified date in the future at which an event is scheduled to occur or a deadline is to be met.

Quantity

The amount or number of a material or immaterial entity that is accessible or demanded.