Question 1

Which following organizations)is are)the founders)of the "blue-ribbon" panel?
A)AICPA
B)FAF
C)FASB
D)NASBA
E)All of the above

Accepted Answer

The "blue-ribbon" panel was founded by a collaboration of several organizations, including the American Institute of Certified Public Accountants (AICPA), the Financial Accounting Foundation (FAF), the Financial Accounting Standards Board (FASB), and the National Association of State Boards of Accountancy (NASBA). These organizations came together to address and improve the standard-setting process for private companies in the United States.

Question 2

Which is one of the options from full IFRS eliminated for SMEs?
A)For inventory,measurement is driven by circumstances rather than allowing an accounting policy choice between the FIFO and Lower of Cost or Market models
B)Various options for non-profit organization grants eliminated in favor of a single simplified model.
C)Biological assets measured at fair value with changes taken to profit and loss only when fair value is readily determinable without undue cost or effort.Otherwise,use cost-depreciation-impairment model.
D)Share-based payments require use future value of the compensation option

Accepted Answer

The IFRS for SMEs eliminates the option to measure biological assets at fair value unless fair value is readily determinable without undue cost or effort, simplifying the accounting treatment for SMEs.

Question 3

Which of the following entities may not gain distinct advantages from adopting IFRS for SMEs?
A)Entities owned by a foreign parent currently using IFRS
B)Entities that have cooperation with foreign companies using IFRS
C)Entities with foreign investors familiar with IFRS
D)Growing entities preparing to enter public markets where a full IFRS would otherwise be required

Accepted Answer

B

Question 4

Which is one criterion of SMEs?
A)Have no publicly-traded assets or equity
B)Publish general-purpose financial statements
C)Not hold assets as fiduciary for a broad group of outsiders
D)Pass the certain size test created by the IASB to qualify

Accepted Answer

SMEs (Small and Medium-sized Enterprises) are defined, among other criteria, by not holding assets in a fiduciary capacity for a broad group of outsiders, which distinguishes them from financial institutions and similar entities.

Question 5

The Blue Ribbon Panel was in charge of recommending an approach to standard setting for private companies in the U.S.to the FAF,what did the Blue Ribbon Panel determine?
A)A separate standard setting board for private company financial reporting should be established under the FAF's oversight.
B)Initially the new Board should focus on making exceptions and modifications to U.S.GAAP for private companies rather than moving toward a separate,self-contained GAAP for private companies.
C)The new Board should also work to develop a framework for determining which standards should be exempted or modified for private companies.
D)All of the above

Accepted Answer

The Blue Ribbon Panel determined that a separate standard setting board for private company financial reporting should be established under the FAF's oversight, that initially the new Board should focus on making exceptions and modifications to U.S.GAAP for private companies rather than moving toward a separate, self-contained GAAP for private companies, and that the new Board should also work to develop a framework for determining which standards should be exempted or modified for private companies. Therefore, option D - all of the above - is the best choice.

Question 6

Which of the following is included in full IFRS but eliminated for SMEs' IFRS?
A)Pro forma financial reporting
B)Segment reporting
C)Special accounting for securities held for sale
D)Revaluation of intangibles

Accepted Answer

Segment reporting is included in full IFRS but is not required for SMEs under IFRS for SMEs, simplifying the reporting requirements for smaller entities.

Question 7

Which comparison between full IFRS and IFRS for SMEs is incorrect?

Accepted Answer

The answer of Which comparison between full IFRS and IFRS...

Quiz 5: IFRS for Small-And Medium-Sized Entities

Which following organizations) is are) the founders) of the "blue-ribbon" panel?

Which is one of the options from full IFRS eliminated for SMEs?

Which of the following entities may not gain distinct advantages from adopting IFRS for SMEs?

Which is one criterion of SMEs?

The Blue Ribbon Panel was in charge of recommending an approach to standard setting for private companies in the U.S.to the FAF,what did the Blue Ribbon Panel determine?

Which of the following is included in full IFRS but eliminated for SMEs' IFRS?

Which comparison between full IFRS and IFRS for SMEs is incorrect?