Which of the following statements about International Financial Reporting Standards (IFRS) is NOT true?

A. IFRS sets out broad and general principles that accountants should follow when preparing financial statements.

B. IFRS offers simplicity but also possibly more leeway for accounting malpractice than does GAAP.

C. In 2008, the Securities and Exchange Commission (SEC) announced its plan to convert U.S. companies from GAAP to IFRS.

D. IFRS leaves LESS room for discretion than GAAP does.

2. Rogue Corp. has sales of $4,250,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000. The firm's interest expense is $250,000, and the corporate tax rate is 40%. What is Rogue's tax liability?

• A. $260,000
• B. $360,000
• C. $600,000
• D. $258,000