Question

Which of the following is correct regarding IFRS?

1) Companies that are required to file their financial statements with the SEC must follow IFRS starting in 2015.
2) Recent developments suggest that the SEC may be slowing down its efforts towards adopting IFRS any time soon.
3) When an auditor is engaged to report on financial statements prepared in accordance with IFRS, they must issue a qualified opinion.
4) The introductory paragraph of the audit report is modified to indicate that the audit was conducted in accordance with International Standards on Auditing.

Answer 1

Option 2 is correct: Recent developments suggest that the SEC may be slowing down its efforts towards adopting IFRS any time soon.

Step-by-step explanation:

The correct option regarding IFRS is option 2) Recent developments suggest that the SEC may be slowing down its efforts towards adopting IFRS any time soon.

IFRS stands for International Financial Reporting Standards. It is a set of accounting standards developed by the International Accounting Standards Board (IASB) to provide consistency and comparability in financial reporting across countries.

Option 1 is incorrect because starting in 2015, companies that are required to file their financial statements with the SEC have the option to either follow IFRS or generally accepted accounting principles (GAAP). Option 3 is incorrect because the auditor is not required to issue a qualified opinion when reporting on financial statements prepared in accordance with IFRS. Option 4 is incorrect because the introductory paragraph of the audit report is not modified to indicate that the audit was conducted in accordance with International Standards on Auditing.