IFRS 8 Requires the Disclosure of Certain Key Information Such

question 4

Multiple Choice

IFRS 8 requires the disclosure of certain key information such as an organization's major customers and geographic areas of operations. Why are these disclosures required?

• A)To demonstrate that the chief operating decision-maker has made prudent decisions
• B)To allow users to assess potential business risks
• C)To provide sufficient information to creditors
• D)To allow users to see that the poor performance of one segment is usually offset by the good performance of other segments

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Definitions:

F-Ratio

A statistic used in ANOVA to compare the variance among group means to the variance within groups; a measure of variance between groups relative to variance within groups.

Main Effect

In statistical analysis, the direct impact of an independent variable on a dependent variable, disregarding the influences of or interactions with other variables.

Reject

In statistics, to refuse the null hypothesis based on evidence from sample data meeting a predetermined significance level.

Interaction Effect

In statistics, the effect that an independent variable has on the outcome variable depends on or varies according to the levels of one or more other independent variables.