Which of the following is a reason why the IASB and FASB jointly developed a revenue standard?
I. remove inconsistencies and weaknesses in the current revenue recognition literature;
II. provide a more robust framework for addressing revenue recognition issues;
III. improve comparability of revenue recognition practices across the various industries, entities, jurisdictions and capital markets;
IV. provide a single reference point in order to reduce the volume of the relevant standards and interpretations that entities will need to refer to;
V. provide more useful information to users through enhanced-disclosure requirements.
A) I, II only
B) II, III and IV only
C) I, III and IV only
D) I, II, III, IV and V

Question

Which of the following is a reason why the IASB and FASB jointly developed a revenue standard?
 I. remove inconsistencies and weaknesses in the current revenue recognition literature;
II. provide a more robust framework for addressing revenue recognition issues;
III. improve comparability of revenue recognition practices across the various industries, entities, jurisdictions and capital markets;
IV. provide a single reference point in order to reduce the volume of the relevant standards and interpretations that entities will need to refer to;
V. provide more useful information to users through enhanced-disclosure requirements.
A) I, II only
B) II, III and IV only
C) I, III and IV only
D) I, II, III, IV and V

Quizplus · Accepted Answer

All of the reasons given are cited by the IASB and FASB as the motivation behind the joint development of a revenue standard.

Which of the Following Is a Reason Why the IASB