Which of the Following Statements Is Correct About the Controversial

question 25

Multiple Choice

Which of the following statements is correct about the controversial issues surrounding IFRS 8?

• A) The management approach adopted in IFRS 8 was argued to put preparers' needs ahead of users' needs.
• B) Despite the objections from different parties, all IASB board members at the time unanimously agreed that IFRS 8 should replace IAS 14.
• C) The European Parliament was not able to endorse IFRS 8 due to strong oppositions from European countries.
• D) The proponents of IAS 14 argued that IFRS 8 contains too many mandatory disclosure requirements compared to IAS 14.

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Definitions:

Time Value

The time value of money concept suggests that money available now is more valuable than the same amount in the future due to its potential earning capacity.

Cash Sales

Transactions where goods or services are paid for with cash or its equivalent at the time of sale, without delay.

Credit Sales

Sales made by a business where the payment is received after the service or product has been delivered.

Commercial Paper

Unsecured, short-term promissory notes of large firms, usually issued in denominations of $100,000 or more and having an interest rate of somewhat below the prime rate.