Which of the Following Is Not a True Statement Regarding

question 5

Multiple Choice

Which of the following is not a true statement regarding harmonization of accounting standards?

• A) Harmonization refers to the degree of coordination or similarity among the various sets of national accounting standards and methods and the formats of financial reporting.
• B) Among the factors underlying the desire for harmonization is the rise in importance of the multinational firm.
• C) The issue of harmonization is closely tied to the efforts of the IASB as well as activities of the EU.
• D) Many continental model countries, such as France and Germany, have viewed harmonization as an opportunity to coordinate their accounting standards with those of the United States.

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Definitions:

Enacting Laws

Enacting laws refers to the process by which legislative bodies create new statutes or legal standards.

Federalism

Federalism is a system of government in which power is divided between a central authority and constituent political units, such as states or provinces.

Governing Framework

The system of rules, practices, and processes by which a government is directed and controlled.

Full Faith

A clause in the U.S. Constitution (Full Faith and Credit Clause) requiring each state to recognize the public acts, records, and judicial proceedings of every other state.