- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 1. Introduction to Financial Statement Analysis
- Subject 4. Comparison of IFRS with Alternative Financial Reporting Systems
CFA Practice Question
Which of the following types of discussions regarding the impact of recently issued accounting changes in management's discussion would provide the least meaningful information to an analyst?
B. The standard will have no material impact.
C. Management is still evaluating the impact.
D. The impact of adoption is discussed.
A. The standard does not apply.
B. The standard will have no material impact.
C. Management is still evaluating the impact.
D. The impact of adoption is discussed.
Correct Answer: C
It creates some uncertainty about whether the change might materially affect the company.
User Contributed Comments 2
| User | Comment |
|---|---|
| bantoo | why not (D) |
| Creep | Because D suggests management has already discussed the impact with shareholders/analysts. C suggests that management is uncertain about the effects thus it is the least useful for analysts. |