Home › US CMA Part 2 › Financial Management › Using Financial Information and Accounting › The FASB and the IASB set out to develop a commo…
The FASB and the IASB set out to develop a common set of global accounting standards. What has come of that effort so far?
AThey have agreed on one global set of standards
BThey merged into a single standard setting body
CThey handed the whole task over to the SEC
DThey have not agreed on one global set of standards
Answer & Solution
Correct answer: D. They have not agreed on one global set of standards
1. The two boards published a memorandum of understanding and worked toward convergence of GAAP and IFRS.
2. Merging the two proved very difficult, because United States preparers demand very detailed rules while the IASB sets principles and leaves preparers to apply them.
3. As matters stand, the two organizations have not agreed on a global set of accounting standards.
4. They did not merge and did not hand the work to the SEC: they agreed to disagree while keeping each other informed of upcoming changes.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 14 "Using Financial Information and Accounting", section 14.1 Accounting: More than Numbers_
Related questions
What does a debt-to-equity ratio above 100 percent tell you about who is funding the firm?A bakery reports total liabilities of $70,150 and owners' equity of $78,750. What is its dHow is the debt-to-equity ratio calculated, and which direction is generally better?Why can no single inventory turnover value be called good for every firm?Cost of goods sold was $112,500, beginning inventory was $18,000 and ending inventory was How is the inventory turnover ratio calculated?What do activity ratios reflect?A bakery earned a net profit of $32,175 and has 10,000 shares of common stock outstanding.