Question Details

The conceptual framework underlying U.S. GAAP is similar to that underlying IFRS



TRUE OR FALSE:
1.	The International Accounting Standards Board- (IASB) rule for materiality is any item under 5% of net income is considered immaterial.

	2.	The International Accounting Standards Board- (IASB) conceptual framework includes the concept of prudence or conservatism which means when in doubt, choose the solution that will be least likely to overstate assets or income and/or understate liabilities or expenses.

	3.	Under International Financial Reporting Standards (IFRS) companies must consider both quantitative and qualitative factors in determining whether an item is material.

	4.	Under International Financial Reporting Standards (IFRS) companies need not report immaterial items within the body of the financial statements, but must disclose them in the notes or supplementary information that accompany the financial statements.

	5.	The conceptual framework underlying U.S. GAAP is similar to that underlying IFRS.




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