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 marksBriefly 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
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 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:
- Comparability across countries: standards bring uniformity and comparability to financial statements; investors can compare enterprises in different countries on one basis.
- Access to global capital markets: statements in an internationally understood framework make cross-border investment and listing easier and cheaper.
- One reporting language for multinational groups, avoiding costly reconciliation between national GAAPs.
- 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
| # | Component | Marks |
|---|---|---|
| 1 | Four needs, briefly explained | 2 |
| Total | 2 |
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