Question

Case 3.4 - IASs are used in a variety of ways.

*List the five ways might be used

*How does the IASB enforce its standards

*Approximately how many companies and jurisdictions currently used IASB standards?

Answer 1

SOLUTION

Five ways IASs might be

• Helps in maintaining solvency of the firm
• Used to recognise financial events
• Measurement of financial transections
• Presentation of financial staements in a fair manner
• Disclosure

IASB are desinged to act as a guide in preparation of financial statements .IASB cannot enforce use of its accounting standards because each country have its own regulation in preparing and reporting of financial statements .

Around 120 countries and reporting jurisdictions permits use of IFRS and around 90 countries gives full confirmation with IFRS  issued by IASB .