BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Political environment.
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Expectations gap.
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Decision-usefulness
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Ethics.
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Detailed explanation-1: -The international financial reporting environment includes challenges in financial reporting including all of the following except. Political environment.
Detailed explanation-2: -The primary focus of financial reporting is information about earnings and its components. Hence financial statement do not consider assets and liabilities expressed in non-monetary terms.
Detailed explanation-3: -The elements of the financial statements are the assets, liabilities, revenue, gain, losses, etc. The balance sheet is a financial statement not an element of the financial statement.
Detailed explanation-4: -A survey of the relevant literature has identified the following five items as being commonly accepted as factors influencing a country’s financial reporting practices: legal system, taxation, providers of financing, inflation, and political and economic ties.