Which of the Following Is Not True Concerning the FASB

question 73

Multiple Choice

Which of the following is not true concerning the FASB and the IASB conceptual frameworks?

• A)Both the FASB and the IASB rely on a conceptual framework to guide their standard-setting decisions.
• B)The conceptual framework is not a rigorous set of principles from which standard setters can logically deduce appropriate financial reporting standards.
• C)The purpose of a conceptual framework is to guide standard-setting decisions in order to enhance the quality and consistency of those decisions.
• D)The FASB and the IASB have separately developed their conceptual frameworks, and those frameworks are very different.
• E)The two standard-setting bodies are currently working to develop a common conceptual framework for financial reporting.

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Definitions:

Conceptual Frameworks

Structures of concepts and ideas that guide thinking, research, and practice in various fields by providing an organized way to make sense of related phenomena.

Piaget

A Swiss psychologist known for his pioneering work in child development, specifically his theory of cognitive development that describes how children construct a mental model of the world.

Formal Operational Stage

In Piaget’s theory, the stage of cognitive development (normally beginning about age 12) during which people begin to think logically about abstract concepts.

Crib Death

Also known as Sudden Infant Death Syndrome (SIDS), it refers to the sudden and unexplained death of a seemingly healthy baby during sleep.