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Which statement is FALSE? A. International Financial Reporting Standards are use

ID: 2331178 • Letter: W

Question

Which statement is FALSE?

A.

International Financial Reporting Standards are used by most countries around the world.

B.

U.S. Generally Accepted Accounting Principles are used by many countries around the world.

C.

The most commonly used accounting practices are essentially the same under both U.S. Generally Accepted Accounting Principles and International Financial Reporting Standards.

D.

For many years, U.S. Generally Accepted Accounting Principles were considered to be the strongest single set of accounting standards in the world.

Explanation / Answer

A. IFRS are adopted by more than 110 nations hence it is TRUE to say that IFRS are adopted by many countries

B. US GAAP are only followed by US, hence it is FALSE to say that US GAAP are adopted by many countries.

C. Most commonly sed accounting practices such as EPS, DEPS etc are same under IFRS & US GAAP. Hence the statement given is TRUE

D. Before IFRS were commonly adopted by whole world, US was dominating with its sets of rules under US GAAP. Hende its also TRUE

THEREFORE THE FALSE STATEMENT IS (B)