Challenges to convergence of IFRS with U.S. GAAP include all of the following except
A) cultural differences exist between countries.
B) the litigious environment in the U.S. is best suited to very detailed standards.
C) legal barriers to change include the difficulty associated with changing loan covenants.
D) political issues result in politicians setting the final accounting standards.

Question

Quizplus · Accepted Answer

Political issues do have an impact on the convergence of IFRS with U.S. GAAP, but politicians do not set the final accounting standards. The Financial Accounting Standards Board (FASB) is an independent body that sets accounting standards in the United States. The other options, A, B, and C, are all valid challenges to convergence.

Challenges to Convergence of IFRS with U