The SEC has ________.
A)ordered all U.S.companies to begin using IFRS immediately
B)ruled that U.S.companies may never use IFRS for financial reporting
C)established a time table for the convergence of U.S.GAAP and IFRS
D)established an International Accounting Standards Board to create international accounting rules

Question

Quizplus · Accepted Answer

The SEC has established a time table for the convergence of U.S. GAAP and IFRS, which means they have set a plan and timeline for the two sets of accounting standards to become more aligned. Option A is incorrect because the SEC has not ordered all U.S. companies to begin using IFRS immediately. Option B is also incorrect because the SEC has not ruled that U.S. companies may never use IFRS for financial reporting. Option D is wrong because the International Accounting Standards Board was not established by the SEC, but rather by a group of professional accounting organizations.

The SEC Has ________