Differential Reporting for Small Entities and Large Entities Will Result

question 39

Multiple Choice

Differential reporting for small entities and large entities will result in the following:

• A)additional costs of training and education in preparing two sets of standards at professional and education level.
• B)burden placed on some subsidiaries to prepare financial information based on the requirements of full IFRSs for the purposes of the parent entity consolidation.
• C)loss of comparability across all types of entities financial statements.
• D)all the given answers.

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Definitions:

Risk Breakdown Structure

A hierarchical decomposition of risks associated with a project, categorized systematically for analysis and management.

Risk Evaluation

The process of identifying potential risks in a project and assessing the likelihood and potential impact of those risks.

Potential Risk

The possibility of an event occurring that could negatively affect the accomplishment of objectives.

Potential Impact

A possible effect or outcome that a specific action or event might have on something or someone.