Question

3. Which of the following statements is true?

a. Foreign firms registered with the SEC may file reports based on IFRS.
b. U.S. firms registered with the SEC may file reports based on IFRS.
c. The European Union requires firms to report based on GAAP.
d. Foreign firms registered with the SEC may file reports based on IFRS only if they reconcile all amounts to GAAP.

Answer 1

Answer: Option "A" is the correct answer to the following statement.

Step-by-step explanation:

Foreign companies that are registered with the SEC. file reports based on International Financial Reporting Standards

• SEC: The U.S. Securities and Exchange Commission is an autonomous federal government body charged with protecting consumers, regulating the securities markets in a reasonable and orderly manner and promoting the creation of resources.

• IFRS: International Financial Reporting Standards are reporting standards developed by the International standards Council and the IFRS Framework. These represent a systematic way of describing the financial performance of the company so that financial statements around international boundaries are clear and equivalent.