- 1 Marks
Question
Which of the statements listed below about IFRS is invalid?
A. Multinational should benefit from a number of cost savings when using IFRS
B. Companies that wish to reach a wider group of investors will find financial statements based on IFRS acceptable in all major markets
C. Using IFRS will make it easier, though more expensive, to have secondary listing in other countries of the world
D. Using the same accounting basis provides greater comparability between companies which will lead to more efficient investment
E. The original standard setter between (1973-2000) was International Accounting Standard Committee (IASC)
Answer
C. Using IFRS will make it easier, though more expensive, to have secondary listing in other countries of the world
Explanation:
The correct answer is “C” because adopting IFRS generally reduces, rather than increases, costs associated with achieving secondary listings across borders. IFRS aims to streamline compliance for multinational listings, enhancing accessibility and reducing barriers rather than creating additional costs.
- Tags: Accounting Standards, Financial Reporting, IFRS, International Standards
- Level: Level 3
- Topic: Regulatory Framework and Professional Standards
- Series: NOV 2011
- Uploader: Dotse