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Which of the following could be considered as enhancing qualitative characteristics of financial reporting?
Enhancing qualitative characteristics are the attributes that make financial information useful. Qualitative attributes are the non-numerical characteristics that distinguish more useful information from less useful information. All of the following characteristics are considered to be enhancing qualitative characteristics: comparability (i.e. consistency), verifiability, timeliness, and understandability.
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Which of the following is not an accurate difference between the International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (US GAAP)?
"The US GAAP uses a principles based approach while the IFRS employs a rules based approach" is the correct answer. This is not an accurate difference between the IFRS and the USGAAP. The US GAAP typically employs a rules based approach while the IFRS follows a principles based approach. The other choices represent accurate differences between the IFRS and US GAAP according to the International Accounting Standards Committee.
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