What Are Some of the Risks for a Company Converting

question 30

Multiple Choice

What are some of the risks for a company converting from GAAP to IFRS?

• A)Misstatement of financial information
• B)Fraud
• C)Ineffective communication of the impact of the change to investors and creditors
• D)Management's inability to certify the effectiveness of controls over financial reporting
• E)All of the items listed above are risks that a company converting from GAAP to IFRS must
• Be aware of

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Definitions:

Financial Matters

Issues or activities related to the management, investment, and control of money and assets.

Venture Capital Fund

A fund that invests in high-growth companies in exchange for equity, or ownership stakes, typically in early-stage companies.

Private Placement

The offering of securities to a relatively small number of select investors as a way of raising capital.

Flotation Costs

Expenses incurred by a company in issuing new stocks or bonds, including underwriting costs, legal fees, and registration fees.