Which of the following statements is true about the IASB's approach to accounting standard setting?

Question

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The IASB uses a principles-based approach to standard setting, which relies on overarching principles to guide accounting decisions rather than specific rules. This approach emphasizes the importance of professional judgment in interpreting standards and applying them to unique situations. The FASB, on the other hand, has historically used a more rules-based approach. Option A is incorrect because the IASB approach is not similar to the rules-based FASB approach. Option C is incorrect because the IASB pronouncements are not considered a "cookbook" of accounting standards. Option D is incorrect because the Sarbanes-Oxley Act does not mandate that the FASB adopt the IASB approach to standard setting.

Which of the Following Statements Is True About the IASB's