IFRS Test 1 HW Questions

3. Identify the correct statement about IFRS usage in the US: a. IFRS is intended for publicly accountable entities and has not yet been adopted in the US. b. IFRS is intended for non publicly accountable entities and has not yet been adopted in the US. c. IFRS is intended for public accountable entities and will be adopted by the US in 2016. d. IFRS is intended for non publicly accountable entities and will be adopted by the US in 2016. -answer- A. IFRS is intended for publicly accountable entities and has not yet been adopted in the US 4. What does IFRS for SMEs stand for and for whom are these standards intended? -answer- IFRS for SMEs stands for International Financial Reporting Standards for Small and Medium-sized Enterprises. These standards are intended for entities that do not have public accountability. These standards have been accepted by the AICPA as an acceptable alternative reporting standard to US GAAP for non-SEC registrants 5. Is US GAAP better and of higher quality than IFRS? -answer- It cannot be definitively stated that US GAAP is better or of higher quality than IFRS or that IFRS is better of of higher quality than US GAAP 6. US GAAP and IFRS are more alike than different for most commonly encountered transactions. a. True b. False -answer- A. True 7. List one advantage that some could argue that IFRS standard setters had in est