The International Accounting Standards Board's conceptual framework includes a cost constraint. Which of the following best describes the cost constraint?
A) The benefits of the information must be greater than the costs of providing it.
B) Financial information should be free from cost to users of the information.
C) Costs of providing financial information are not always evident or measurable, but must be considered.
D) All of the choices are correct.

Question

Quizplus · Accepted Answer

The cost constraint in the IASB's conceptual framework states that financial reporting must provide information that is useful and relevant to decision-makers, but the benefits of providing the information should outweigh the costs of doing so. This means that financial reporting must strike a balance between usefulness and cost-effectiveness.

The International Accounting Standards Board's Conceptual Framework Includes a Cost