The IASB and FASB Are Working on Several Joint Projects

question 9

Multiple Choice

The IASB and FASB are working on several joint projects. What is the purpose of the Revenue Recognition Project?

• A) to provide guidance on the application of the acquisition method.
• B) to enhance the usefulness of information in assessing the financial performance of the reporting enterprise.
• C) to develop a common comprehensive standard on revenue recognition.
• D) to develop a common conceptual framework that both boards can use as a basis for future standard-setting.
• E) to agree upon financial statement titles that will have no differentiation after translation to various languages.

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Definitions:

Legal Assent

A promise to buy or sell that the courts will require that the parties obey.

Mutual Mistake

The result of an error by both parties about a material fact, i.e., one that is important in the context of a particular contract.

Fraudulent Misrepresentation

The act of intentionally making false statements to induce another party to enter into a contract, resulting in harm or damage.

Intentional Misrepresentation

Deliberate false statement by one party aimed at getting another party to enter into an agreement.