Which of the following statements about the elements of financial statements under the FASB and IASB frameworks is least accurate?
A) |
The word “probable” is used by the FASB to define assets and liabilities. | |
B) |
The IASB framework lists income and expenses as the elements related to performance. | |
C) |
The IASB framework does not allow the values of assets to be adjusted upward. | |
Differences in financial statement elements include: (1) The IASB framework lists income and expenses as the elements related to performance, while the FASB framework uses revenues, expenses, gains, losses, and comprehensive income. (2) FASB defines an asset as a future economic benefit, where IASB defines it as a resource from which a future economic benefit is expected. (3) The word “probable” is used by the FASB to define assets and liabilities, and by the IASB to define the criteria for recognition. (4) The FASB framework does not allow the values of most assets to be adjusted upward. |