According to the IASB, What Is Needed for IFRS to Work

question 36

Multiple Choice

According to the IASB, what is needed for IFRS to work effectively?

• A) Commitment from auditors to resist client pressures.
• B) Professional judgment in the public interest on the part of companies and auditors.
• C) Financial statement preparers must produce reports that faithfully represent all transactions.
• D) All of the above are conditions for effective standards.

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Definitions:

Negotiation

A dialogue between two or more people or parties intended to reach a beneficial outcome over one or more issues where conflict exists.

Win-Lose

A competitive situation or outcome in which one party's gain is exactly balanced by another's loss.

Motivational Theories

A set of theories in psychology that attempt to explain how people are motivated to achieve certain goals and how this motivation influences their behavior and performance.

Maslow

Refers to Abraham Maslow, an American psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.