Question

Does standardization of accounting standards (IFRS) mean standardization in practice?

a) Yes, standardization in theory leads to standardization in practice
b) No, IFRS allows for flexibility in implementation
c) Yes, IFRS mandates uniform accounting practices worldwide
d) No, standardization only applies to financial reporting

Answer 1

The International Financial Reporting Standards (IFRS) allows for flexibility in implementation, therefore standardization in practice does not always occur. The answer to this question is b).

Step-by-step explanation:

The answer to this question is b) No, IFRS allows for flexibility in implementation. Although the International Financial Reporting Standards (IFRS) provide a set of accounting standards that companies should follow, they do allow for some flexibility in how these standards are implemented. While the IFRS aims to promote standardization in accounting practices worldwide, it does not mandate uniform accounting practices everywhere. Each country may have its own regulatory framework to adopt and implement the IFRS, which can result in differences in practice.