Question 1

Which of the following statements regarding IFRS 1 is true?
A)The core principle of IFRS 1 is for the entity to apply the same accounting principles in its opening balance sheet and across all periods in the first IFRS financial statements.
B)A statement of financial position must be prepared for two years prior to establish opening balances for the prior year.
C)All of the above
D)None of the above

Accepted Answer

C

Question 2

Which is one of the key activities that will lead to a company's successful IFRS conversion?
A)Development of a conversion timeline
B)Implementation of effective training only in the accounting department
C)Development of a new conversion strategy different from Europe
D)Establishment of a project management team which can create own specific plan for individual company's conversion

Accepted Answer

Developing a conversion timeline is crucial as it helps in planning and managing the transition process effectively, ensuring that all necessary steps are completed in a timely manner.

Question 3

IFRS requires accounting students and educators)to realize that virtually every number in financial statements:
A)results from judgment and estimates
B)has a basis in valuation and fair value
C)is rooted in the conceptual framework
D)is based on an application of a standard
E)all of the above

Accepted Answer

IFRS requires accounting students and educators to realize that virtually every number in financial statements results from judgment and estimates, has a basis in valuation and fair value, and is rooted in the conceptual framework, all of which are based on an application of a standard. Therefore, all of the above options are the best choice(s).

Question 4

Which is one of the FASB/IASB convergence projects?
A)Fixed Asset impairment
B)Revenue recognition
C)Financial instruments with characteristics of liability
D)Lower of cost or market measurement guidance

Accepted Answer

Revenue recognition is one of the FASB/IASB convergence projects, aimed at developing a common standard for revenue recognition across different industries and jurisdictions.

Question 5

Which of the following does IFRS require accounting students and educators to learn?
A)To master specific IFRS policies to better accept the new accounting standards
B)To focus on underlying concepts and their application
C)To realize the difference between U.S.GAAP and IFRS to better develop the financial statements
D)To research standards and interpretations on GAAP in order to differentiate policies from IFRS

Accepted Answer

The answer of Which of the following does IFRS require...

Question 6

Which of the following statements is true regarding IFRS accounting education?
A)The emphasis in IFRS accounting will be on memorization of rules
B)The emphasis in IFRS accounting will be on the application of the conceptual framework
C)The bookkeeping techniques are essential knowledge.
D)The single analytical effect of transactions resulting from business decisions and changes in the environment must be understood.

Accepted Answer

The answer of Which of the following statements is true...

Question 7

In learning IFRS,accounting students and educators)must learn to:
A)make judgments in a world of uncertainty
B)apply a variety of valuation models
C)focus on underlying concepts and their application
D)research standard and interpretations
E)all of the above

Accepted Answer

Learning IFRS requires a comprehensive understanding of all the options listed, including making judgments in an uncertain world, applying different valuation models, focusing on underlying concepts and their application, and researching standards and interpretations.

Question 8

Which of the following is the correct order of steps that should be applied to the opening IFRS statement of financial position and must be prepared and presented on the date of transition to IFRS?
1)Identify all assets and liabilities required under the IFRS
2)Reclassify items previously under GAAP that were recognized as one type of asset or liability but are now recognized as a different asset or liability under the IFRS
3)Remove assets and liabilities not permitted under the IFRS
4)Measure the assets and liabilities recognized under the IFRS
A)1)2)3)4)
B)1)3)2)4)
C)1)2)4)3)
D)1)4)2)3)

Accepted Answer

The correct order involves first identifying all assets and liabilities required under IFRS, then removing those not permitted, reclassifying items as necessary, and finally measuring the recognized assets and liabilities.

Question 9

Which of the following are differences between U.S.GAAP and IFRS?
A)U.S.GAAP allows revaluation of nonfinancial assets
B)U.S.GAAP prohibits LIFO inventory accounting
C)U.S.GAAP and IFRS adopt contrasting approaches to revenue recognition
D)IFRS provides substantially more industry guidance

Accepted Answer

U.S. GAAP and IFRS have converged in many areas, but they still adopt different approaches to revenue recognition, despite efforts to align the standards. U.S. GAAP has specific guidance for different industries, whereas IFRS is more principle-based in this area.

Question 10

IFRS requires disclosure that explains how the transition from previous GAAP to IFRS affect the entity's reported:
A)Financial position
B)Financial performance
C)Cash flows
D)All of the above

Accepted Answer

IFRS requires disclosure that explains how the transition from previous GAAP to IFRS affects the entity's reported financial position, financial performance, and cash flows. Therefore, all of the above choices are correct.

Question 11

Which of the following are the main financial values of adopting IFRS?
A)Mitigating financial reporting risk,decreasing financial transparency risk,and creating operational efficiencies
B)Strengthening financial performance,decreasing financial transparency risk,and creating operational efficiencies
C)Strengthening financial performance,decreasing financial transparency risk,increasing the comparability of financial statement
D)Mitigating financial reporting risk,decreasing financial transparency risk,increasing the comparability of financial statement

Accepted Answer

The answer of Which of the following are the main...

Quiz 6: The Current Status and Future of IFRS

Which of the following statements regarding IFRS 1 is true?

Which is one of the key activities that will lead to a company's successful IFRS conversion?

IFRS requires accounting students and educators) to realize that virtually every number in financial statements:

Which is one of the FASB/IASB convergence projects?

Which of the following does IFRS require accounting students and educators to learn?

Which of the following statements is true regarding IFRS accounting education?

In learning IFRS,accounting students and educators) must learn to:

Which of the following are differences between U.S.GAAP and IFRS?

IFRS requires disclosure that explains how the transition from previous GAAP to IFRS affect the entity's reported:

Which of the following are the main financial values of adopting IFRS?