Under IFRS, which of the following is the first step within
the hierarchy of guidance to which management refers, and
whose applicability it considers, when selecting accounting policies?

(b) The requirement is to identify the first step within
the hierarchy of guidance to which management refers when
selecting accounting policies. Answer (b) is correct because the
highest level in the hierarchy is an IFRS standard applicable to
the transaction. Answer (a), (c), and (d) are incorrect because
they all represent lower levels in the hierarchy.