A Major Way in Which IFRS Differs from GAAP That

question 15

Multiple Choice

A major way in which IFRS differs from GAAP that will affect the design of a company's general ledger and reporting system is an IFRS principle known as

• A)componentization.
• B)monetization.
• C)securitization.
• D)centralization.

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Definitions:

Creativity

The ability to generate original ideas or solutions to problems by thinking outside of conventional boundaries.

Social Loafing

The phenomenon where individuals reduce their effort when working in a group compared to when they work alone.

Fundamental Attribution Error

The overestimation of internal factors and underestimation of external factors driving individual behaviour.

Representativeness Bias

Basing a decision on similarity to other situations.