Which of the Following Statements Is True Regarding the SEC's

question 17

Multiple Choice

Which of the following statements is true regarding the SEC's timeline for convergence?

• A)The SEC has no immediate plans to converge GAAP reporting with IFRS standards.
• B)The SEC has a plan in place to allow firms to begin filing in the United States based on IFRS during the next several years.
• C)The SEC has a plan in place to allow companies to choose to file statements under GAAP reporting or IFRS standards indefinitely.
• D)The SEC currently allows domestic companies to choose to file financial statements under either GAAP or IFRS reporting standards.

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Definitions:

Duty of Disclosure

The legal obligation to reveal all material facts or information relevant to a transaction or decision-making process.

Duty of Care

A legal requirement that demands individuals or organizations to exercise a reasonable degree of attention and caution to avoid negligence that could harm others.

Business Judgment Rule

A legal principle that protects company directors from liability for decisions made in good faith and with a reasonable basis.

Officer's Roles

Responsibilities and duties assigned to officers within an organization, including executing company policies and managing operational activities.