Question 2 (a)

Four needs of IFRS

2 marks

Time to write
About 4 minutes

From an older CBCS paper

Question

Question 2 (a) · 2 marks

Briefly explain any four needs of IFRS. 2

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

4 minfor 2 marks

Read from the question

  • any fourThe paper asks for any 4, and this is one of them. Only 4 are marked: a fifth earns nothing.
  • BrieflyShort headed points, no long paragraphs.

Write it in this order

  1. 1 Four needs, briefly explained 2 marks 4 min

Try it first. About 4 minutes for 2 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

International Financial Reporting Standards (IFRS) are needed because:

  1. Comparability across countries: standards bring uniformity and comparability to financial statements; investors can compare enterprises in different countries on one basis.
  2. Access to global capital markets: statements in an internationally understood framework make cross-border investment and listing easier and cheaper.
  3. One reporting language for multinational groups, avoiding costly reconciliation between national GAAPs.
  4. Reliability and investor confidence: a widely accepted standard reduces the scope to manipulate reported data. In India the ICAI meets these needs by integrating international standards in the light of Indian conditions.

Where the 2 marks sit

#ComponentMarks
1Four needs, briefly explained2
Total2
Keyboard: ← → previous and next question, / search

Report a problemopens an email to admin@getkunji.com with the question ID7761-Q2aalready filled in.