Which of the following statements is true?
A)Foreign firms registered with the SEC may file reports based on IFRS.
B)U.S.firms registered with the SEC may file reports based on IFRS.
C)The European Union requires firms to report based on GAAP.
D)Foreign firms registered with the SEC may file reports based on IFRS only if they reconcile all amounts to GAAP.

Question

Quizplus · Accepted Answer

Foreign firms registered with the SEC are allowed to file reports based on International Financial Reporting Standards (IFRS) without the need to reconcile to U.S. Generally Accepted Accounting Principles (GAAP). This facilitates the reporting process for these companies and provides a more uniform set of financial statements for investors who are familiar with IFRS.

Which of the Following Statements Is True