The IASB and FASB Are Working on Several Joint Projects

question 30

Multiple Choice

The IASB and FASB are working on several joint projects. What is the purpose of the Financial Statement Presentation 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.

---

Definitions:

Automatic Stabilizers

Economic policies and programs, such as unemployment benefits and progressive taxation, that automatically help stabilize an economy by increasing spending in a downturn and reducing spending in an upswing without additional government action.

Private Spending

Private Spending is the total expenditures by individuals and businesses in an economy, excluding government spending and investment.

Transfer Payments

Payments made by the government to individuals or organizations without requiring any goods or services in return, such as welfare checks or social security.

Business Cycle

The fluctuations in economic activity that an economy experiences over a period, typically characterized by expansion (growth) and contraction (recession) phases.