Question

Ar The objective of the Interr o achieve consistent interpretations of IFRS by IFRS-adopters internationally ng interpre ddress accounting isues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance, with a view to reaching consensus on the appropriate accounting treatment o address issues of reasonably widespread importance, and not issues of concern only to a small set of enterprises. o all the given answers are correct.

Answer 1

The answer is the last option – “all the given answers are correct”.

It should be noted that IFRIC issues guidelines on accounting matters where divergent interpretations of IFRSs have come into existence. Also IFRIC addresses issues of reasonably widespread importance, not issues that are of concern to only a small minority of entities. The interpretations of IFRIC cover issues where unsatisfactory or conflicting interpretations have developed, or seem likely to develop in the absence of authoritative guidance. It also covers newly identified financial reporting issues not specifically dealt with in IFRSs.