Which of the following statements about IFRS is true?
A)IFRS is more rule-based than pre-IFRS GAAP.
B)IFRS reduces the number of management estimates that can be used.
C)IFRS requires more judgement in selecting appropriate accounting policies than under pre-IFRS GAAP.
D)IFRS does not require as strong an accounting infrastructure as under pre-IFRS GAAP.

Question

Quizplus · Accepted Answer

IFRS requires more judgement in selecting appropriate accounting policies than under pre-IFRS GAAP. It is less rule-based and more principle-based than pre-IFRS GAAP, which allows for more flexibility in accounting treatments and requires more professional judgement in choosing the appropriate method. IFRS also places more emphasis on the substance of transactions rather than their legal form, which requires a deeper understanding of the underlying economic realities of a transaction.

Which of the Following Statements About IFRS Is True