Which of the Following Statements Is True About the IASB's

question 40

Multiple Choice

Which of the following statements is true about the IASB's approach to accounting standard setting?

• A) The IASB approach is very similar to the rules-oriented basis favored by the FASB in the United States.
• B) The IASB uses a principles-based approach to standards formulation.
• C) The IASB pronouncements have been called a "cookbook" of accounting standards.
• D) The Sarbanes-Oxley Act requires the IASB to move toward the approach for standard setting used by the FASB.

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Definitions:

Bury

To place something in the ground or hide it, often as a means of concealment or to dispose of it.

Passive Verb

A verb form that indicates the subject of the sentence is the recipient of the action, rather than the performer.

Recommendation

An endorsement or suggestion about the best course of action, typically based on expertise or experience.

Executive Summary

A concise outline of a document's key points, typically found at the beginning, designed to give readers a quick overview.