The International Accounting Standards Board's (IASB) conceptual framework includes a cost-benefit constraint. Which of the following is true regarding this constraint?
A) Benefits are more difficult to quantify than costs.
B) The IASB seeks input on costs and benefits as part of their due process.
C) Benefits to preparers may include access to capital at a lower cost.
D) All of the choices are correct.

Question

Quizplus · Accepted Answer

The IASB's conceptual framework includes a cost-benefit constraint, acknowledging that while benefits of a standard must outweigh its costs, quantifying these benefits can be challenging. The IASB indeed seeks input on costs and benefits as part of their due process to ensure a balanced approach. Additionally, one of the potential benefits to preparers of financial statements is the possibility of accessing capital at a lower cost due to increased transparency and reliability of financial information.

The International Accounting Standards Board's (IASB) Conceptual Framework Includes a Cost-Benefit