In 2012 the SEC Issued an Extensive Report Regarding the Use

question 74

Multiple Choice

In 2012 the SEC issued an extensive report regarding the use of IFRS by U.S.public companies and listed which of the following as a major obstacle to adopting IASB standards?

• A)IASB standards are generally viewed as low quality.
• B)IASB's dependence on funding from the major accounting firms.
• C)Cross-border financing is decreasing in popularity.
• D)The IASB is not a governmental agency and therefore is not positioned to develop accounting standards.

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Definitions:

Determining Factors

Key elements that significantly influence the outcome or condition of a specific situation or context.

MRP

Marginal Revenue Product; the additional revenue generated by employing one more unit of a factor, like labor or capital.

Substitutes

Products or services that can be used in place of each other, where the presence of one reduces the demand for another.

Price Capital

The valuation of capital assets based on their cost or market value, contributing to the overall price level of investments.