Which of the following statements is correct?
A) Now, under the Canadian Institute of Chartered Accountants (CICA) Handbook, firms are not required to expense executive stock options when calculating their earnings.
B) Now, under the Canadian Institute of Chartered Accountants (CICA) Handbook, firms are required to expense executive stock options when calculating their earnings.
C) Now, under the Generally Accepted Accounting Principles (GAAP), firms are required to expense executive stock options when calculating their earnings.
D) Now, under the International Financial Reporting Standards, firms are not required to expense executive stock options when calculating their earnings.

Question

Quizplus · Accepted Answer

The statement mentions the Canadian Institute of Chartered Accountants (CICA) Handbook, which is a set of accounting standards used in Canada. According to the CICA Handbook, firms are now required to expense executive stock options when calculating their earnings. Option A is incorrect as it states the opposite of the correct statement. Option C is incorrect as it mentions Generally Accepted Accounting Principles (GAAP), which is a set of accounting standards used in the United States, not Canada. Option D is incorrect as it mentions International Financial Reporting Standards, which do not apply specifically to Canada.

Which of the Following Statements Is Correct