Which of the Following Statements Is True About Common-Law Countries

question 8

Multiple Choice

Which of the following statements is true about common-law countries?

• A)Common-law countries must completely adopt IFRS.
• B)Amendments to IFRS by common-law countries must be done legislatively.
• C)Amendments to IFRS by common-law countries must be done by government regulation.
• D)In common-law countries, the local non-government standard setting authority can decide which international standards to adopt.

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Definitions:

Multiple-Step Income Statement

An income statement that shows several steps in determining net income.

Income Performance

Evaluation of a company's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period.

Users

Individuals or entities that utilize a particular service, software, or product.

Revenue Recognition Principle

The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied.