Which of the Following Is NOT a Short-Term Convergence Topic

question 26

Multiple Choice

Which of the following is NOT a short-term convergence topic that the IASB must address in order to eliminate the reconciliation of accounts prepared under different sets of standards of different countries?

• A) Segment reporting
• B) Accounting for income taxes
• C) Accounting for impairments of assets
• D) Accounting for research and development costs

---

Definitions:

Compensating Balance

A minimum bank account balance that a borrower is required to maintain with a lender as part of a loan agreement, often used to offset the cost of maintaining the loan.

Deficit Financing

The practice of funding government spending by borrowing rather than from taxation, leading to budget deficits.

Interest Charges

The cost incurred by an entity for borrowing funds; these are often calculated as a percentage of the principal amount loaned or the outstanding balance.

Compensating Balance

A minimum bank account balance that a borrower must maintain as part of a loan agreement, often used to offset the cost of the loan.