Which GAAP approach for private companies would smaller countries that do not have well-established standard-setting processes be most likely to use?
A)IFRS for SMEs
B)Full IFRS
C)Disclosed basis of accounting
D)Code law requirement

Question

Quizplus · Accepted Answer

IFRS for SMEs is a simplified version of full IFRS that is specifically designed for small and medium-sized enterprises. It is intended to be easier to understand and apply than full IFRS, which could be beneficial for countries with less established standard-setting processes. Disclosed basis of accounting is not a GAAP approach and would not provide the necessary guidance for financial reporting. Code law requirement is also not a GAAP approach and is more related to legal systems.

Which GAAP Approach for Private Companies Would Smaller Countries That