All of the following examples suggest that the accounting policy choices available to managers under IFRS results in economic consequences for the entity's stakeholders, except:

Question

Quizplus · Accepted Answer

Depreciation policy is an accounting policy choice under IFRS that directly affects the financial statements and can have economic consequences. However, the question asks for the option that does NOT suggest economic consequences for stakeholders due to accounting policy choices. Management bonuses, debt covenants, and tax minimization are all directly influenced by accounting choices and have clear economic consequences for stakeholders. Depreciation policy, while an important accounting choice, is presented as the exception in the context of this question, implying it's the correct answer because it's a direct application of accounting policy rather than an external economic consequence.

All of the Following Examples Suggest That the Accounting Policy