At a Minimum,a Switch to IFRS from GAAP Will Affect

question 79

Multiple Choice

At a minimum,a switch to IFRS from GAAP will affect companies' accounting information system by

• A)requiring companies to increase the processing power of their existing accounting information systems.
• B)requiring IT departments to hire programmers that are fluent in languages besides English.
• C)requiring the creation of additional fields in research and development (R&D)records to capture information about the stage of research and development that costs are incurred in.
• D)requiring firms to completely redesign their existing accounting information systems because current systems are not compatible with IFRS accounting principles.

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Definitions:

Short-Run Decisions

Decisions made by businesses affecting operations within a period of less than one year, often focusing on immediate operational and financial outcomes.

Opportunity Costs

The potential benefits missed out on when choosing one alternative over another.

Fixed Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Special Offer

A promotional deal or discount aimed at encouraging consumers to buy a product or service.