The International Accounting Standards Board's (IASB) Conceptual Framework

Multiple Choice

The International Accounting Standards Board's (IASB) conceptual framework

A) Includes the concept of prudence or conservatism which means when in doubt, choose the solution that will be least likely to overstate assets or income and/or understate liabilities or expenses.
B) Excludes the concept of prudence or conservatism because it is inconsistent with neutrality, which encompasses freedom from bias.
C) Includes the concept of prudence or conservatism which means when in doubt, choose the solution that will be least likely to understate assets or income and/or overstate liabilities or expenses.
D) Includes the concept of prudence or conservatism as a desirable, but not required, quality of financial reporting information.