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:

Tort

A violation of another person’s rights or a civil wrongdoing that does not arise out of a contract or statute; primary types are intentional, negligent, and strict-liability torts.

Damages

Monetary compensation awarded by a court to a person who has suffered loss or injury due to the unlawful act or omission of another.

Appeal

An appeal is a formal request for a higher court to review and change the decision of a lower court.

Federal Law

The body of law created by the federal government of a country, applicable nationwide.