Presented below are five statements which you are to identify as true or false. If false, explain why the statement is false.
1. The IASB uses a rules-based approach to its standard-setting process, whereas the FASB uses a principles-based approach.
2. The objective of financial statements emphasizes a stewardship approach for reporting financial information.
3. The purpose of the objective of financial reporting is to prepare a statement of financial position, a comprehensive income statement, a cash flow statement, and a statement of changes in equity:
4. The difference between international Accounting Standards and IFRS is that International Accounting Standards are rules-based instead of principles-based.
5. The objective of financial reporting uses an entity rather that a proprietary approach in determining what information to report.