Question: Which statement is correct in relation to developments in US GAAP and IFRS? While reporting standards may change these have no impact upon cash flows

Which statement is correct in relation to developments in US GAAP and IFRS?

While reporting standards may change these have no impact upon cash flows and therefore have little impact upon financial statement analysis.

The audit report will highlight the impact of changes in accounting practices that result from new standards so there is no need for analysts to keep up to date with developments.

Companies may adopt changes to accounting standards at different times resulting in a loss of comparability, making it critical for analysts to keep up to date.

US GAAP and IFRS are fully developed sets of standards and changes to these are minor and infrequent, thus there is no need to follow developments in these standards.

Which statement is correct in relation to

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