Question

Which of the following was created to help manage international accounting challenges in the global economy?

A. IFRS (International Financial Reporting Standards)
B. GAAP (Generally Accepted Accounting Principles)
C. SEC (U.S. Securities and Exchange Commission)
D. IAS (International Accounting Standards)

Answer 1

The IFRS was created to manage international accounting challenges by providing a standardized accounting framework that enhances comparability and understanding of financial statements globally.

Step-by-step explanation:

The institution created to manage international accounting challenges in the global economy is the International Financial Reporting Standards (IFRS). The IFRS framework was established to provide a common language for business affairs so that company accounts are understandable and comparable across international boundaries. This initiative helps promote transparency and accountability in the global market. While the Generally Accepted Accounting Principles (GAAP) are standards primarily used in the United States, the IFRS seeks to consolidate and standardize accounting across different countries.