Deck 1: Introduction to International Financial Reporting Standards Ifrs

Question 1

The predecessor to the IASB (International Accounting Standards Board) was the

A) IACEW
B) IASC
C) IFAC
D) AISG

Answer 1

IASC

Question 2

The first chairman of the IASC was

A) Henry Benson
B) Howard Ross
C) Sidney Davidson
D) Robert Anthony

Answer 2

Henry Benson

Question 3

Which of the following was not a significant development that occurred in the 1980's that increased the relevance of international accounting standards?

A) Acceptance of IAS by several major countries
B) Acknowledgement of adherence to IAS by several prominent international companies
C) IOSCO announced that it would be willing to endorse IAS for use by its regulator members if improvements were made to the standards
D) All of the above were critical developments

Answer 3

Acceptance of IAS by several major countries

Question 4

Which of the following was the primary criterion for determining board members with the development of the new standard-setting structure in 2000.

A) Geographical location (to achieve equal representation for convergence)
B) Previous experience on the IASC
C) Technical expertise
D) Recommendation from the local securities commission

Question 5

The first stage in "due process" is

A) Developing and publishing an exposure draft
B) Developing and publishing a discussion paper
C) Planning the project
D) Setting the agenda

Question 6

The IASB will consider if a possible standard to be developed can be high quality and increase the possibility of convergence in which stage of due process?

A) Setting the agenda
B) Planning the project
C) Developing and publishing the standard
D) Post-issuance activities

Question 7

The Memorandum of Understanding released by the IASB and FASB that detailed their commitment to converged standards is known as

A) The "Norwalk Agreement"
B) The "FASB/IASB Convergence Memo"
C) The "Accounting Agreement of 2002"
D) The "International Accounting Treaty"

Question 8

In regards to the overall structure of the IASB, which organization oversees the Board and acts as the governing body?

A) The IASB
B) The IFRS Advisory Council
C) The IFRS Foundation Trustees
D) The Monitoring Board

Question 9

In regards to the overall structure of the IASB, which organization acts as a liaison to the public capital markets authorities?

A) The IASB
B) The IFRS Advisory Council
C) The IFRS Foundation Trustees
D) The Monitoring Board

Question 10

Entity A is a medium-sized insurance entity. Entity A is not publicly accountable, and it operates in a country that requires international accounting standards. Which standard should Entity A use to create its financial reports?

A) Full IFRS
B) IFRS for SME's
C) Neither A or B

Question 11

An exposure draft is the IASB's main vehicle for informing and consulting with the public.

Question 12

The IASB is required to publish a discussion paper for each potential standard

Question 13

The founding of the IASC was a direct result of the growth in international trade, mergers and acquisitions, and foreign direct investment that followed World War II.

Question 14

China was one of the original nine countries that were members of the IASC.

Question 15

In the creation of a new structure for the IASB, it was determined that half of the Board members would have ties to national standard setters.

Question 16

The IASB was able to complete its joint projects by the established deadline in May 2011.

Question 17

What significant announcement did the European Commission make in 2005 regarding the International Accounting Standards?

Question 18

Explain the role that the U.S. SEC played in the development of the IASB and the development of international accounting standards.

Question 19

What are the three main responsibilities of the IASB board of trustees?

Question 20

Explain what is IFRS for SMEs, and why there is a need for such standards.