Which standards ease international financial reporting and are used by EU countries?

• A. IFRS
• B. GAAP
• C. SEC
• D. FASB

Answer: (A)

International Financial Reporting Standards (IFRS) are the global set of rules used to harmonize how financial statements are prepared and presented. In the European Union, IFRS is the standard for the consolidated financial statements of publicly listed companies, which means EU countries align their reporting to the same framework. This shared language makes it easier for investors and lenders to compare results across borders and supports cross-border investment and financing.

GAAP refers to the U.S. Generally Accepted Accounting Principles, which are specific to the United States. The SEC is the U.S. regulatory body that enforces financial reporting rules, and FASB is the board that sets US GAAP. These are not international standards used by the EU.