BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Financial reporting standards that are issued that are not truly generally accepted.
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Individuals may influence the standards.
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User groups become active.
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The IASB delegates its authority to elected officials.
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Detailed explanation-1: -The correct answer is B) Individuals may influence the standards. If the role of politics increases in accounting standards, then individuals who have the political positions or power can manipulate accounting standards to gain political and personal benefits.
Detailed explanation-2: -There is lack of training facilities and study courses on IFRS. It has recently been observed that India lacks fully trained professionals to implement IFRS. The regulators must carry out training programmes, and awareness drives to adopt IFRS smoothly.
Detailed explanation-3: -IFRS Accounting Standards bring transparency by enhancing the international comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions.
Detailed explanation-4: -Disadvantages of IFRS include a lack of detail, significant adoption costs, and the perception that IFRS is a less stringent standard than what is already in place in some countries.
Detailed explanation-5: -The purpose of IFRS is that entities have common accounting rules that allow financial statements to be consistent, reliable, and comparable between every business in any country.