Deck 3: International Accounting

Question 1

What is the name given to the agreement between the FASB and IASC to harmonize accounting standards? q. The Norwalk Agreement
R) The London agreement
S) The Washington D C agreement
T) The Paris Accords

Answer 1

A

Question 2

Companies that use IFRS:

A) Are allowed to report property, plant, and equipment and natural resources at fair value on their financial statements
B) May only use historical cost as the measurement basis in financial reporting
C) Are required to report all their assets on the statement of financial position at fair value
D) May utilize the framework in a statement of concepts to estimate fair values when market data are not available.

Answer 2

A

Question 3

How does the IASC enforce its standards? m. Through, the International Organization of Securities Commission
N) Through the concept of best endeavors
O) Through the Securities and Exchange Commission
P) Through the Financial Accounting Standards Board

Answer 3

B

Question 4

Under IFRS

A) The going concern assumption is used.
B) The conceptual framework is similar to the conceptual framework under GAAP
C) Companies may apply fair value to natural resources
D) All of these answer choices are correct

Question 5

Which of the following is not an environmental factor that could impact on the development of a country's accounting system?

A) Level of education
B) Political system
C) Geographic location
D) Legal system

Question 6

Which of the following is seen as a pervasive difference between IASB's and FASB's Conceptual Frameworks? …. Definition of elements
†) Number of qualitative characteristics
‡) Scope of authority
ˆ) Level of detail

Question 7

Which of the following is not one of the characteristics discussed in Chapter 2 - Qualitative Characteristics of Useful Financial Information of the IASB's Framework for the Preparation of Financial Statements? }. Understandability
~) Faithful representation
) Relevance
€) Reliability

Question 8

How many member serve on the Accounting Standards Advisory Forum?

A) 12
B) 14
C) 20
D) 22

Question 9

Under the IASB's conceptual framework, a decrease in economic benefit that results in a decrease in equity is termed as a(an):

A) Distributions to owners
B) Loss of economic benefit
C) Comprehensive loss
D) Expense

Question 10

Which of the following is not an effect of the IFRS for SMEs? u. It omits topics in IFRS that are not relevant to SMEs
V) It allows the easier option when IFRS permits accounting policy choices
W) It simplifies many principles for recognizing and measuring assets, liabilities, income, and expenses
X) It requires significantly greater disclosures

Question 11

Which of the following is not an element of financial statements contained in the IASB's Framework for the Preparation of Financial Statements? . Gain
‚) Income
ƒ) Expense
„) Asset

Question 12

How many trustees serve on the IFRS Foundation?
E) 16
F) 18
G) 20 h. 22

Question 13

How many members serve on the IASB? i. 16
J) 18
K) 20
L) 22

Question 14

What is the title of the form that foreign companies have used to reconcile their financial statements to U. S. GAAP? y. Form 10-K
Z) Form 10-Q
{) Form SX
|) Form 20-F

Question 15

Which of the following bodies has the responsibility to issue international financial reporting standards (IFRS)?

A) The International Financial Reporting Interpretations Committee
B) The International Standards Advisory Council
C) The IASC Foundation
D) The International Accounting Standards Board

Question 16

Which of the following concepts is contained in the FASB's conceptual framework but not in the IASC's ‰. Expense
Š) Gain
‹) Asset
Œ) Liability

Question 17

What is the current acronym for the body most responsible for issuing international accounting standards?

A) IASB
B) SEC
C) FASB
D) IASC

Question 18

Which of the following is an element of financial statements under the IASB's conceptual framework?

A) Losses
B) Comprehensive income
C) Investment by owners
D) Equity

Question 19

Which of the following statements is true regarding the conceptual frameworks developed by FASB and IASB?

A) The economic entity assumption is not part of either framework
B) The monetary unit assumption is part of each framework and the U.S. dollar is established as the common unit of currency.
C) Both have similar measurement principles based on historical cost and fair value.
D) The conceptual frameworks underlying U.S. GAAP and IFRS are dissimilar.

Question 20

Which of the following is not a use of international accounting standards?

A) As national requirements.
B) As standards to be violated to improve intercountry comparability.
C) As an international benchmark for those countries that develop their own requirements.
D) By regulatory authorities for domestic and foreign companies

Question 21

Discuss the environmental factors that impact on the development of a country's accounting system.

Question 22

In 2013 a new organization, the Accounting Standards Advisory Forum (ASAF), was added to the IASB's organizational structure. What is the purpose of the ASAF?

Question 23

Outline the steps in the IASB's standard-setting process.

Question 24

Discuss the IASB's annual improvements project.

Question 25

Which of the following statements regarding Chapter 4 - The Elements of Financial Statements of the IASB's conceptual framework is false?

A) The focus of the definitions of assets and liabilities moved to the existence of a right (or an obligation) that has the potential to produce (or require an entity to transfer) economic benefits.
B) It requires that a present obligation be as a result of past events.
C) It changes how an entity distinguishes between a liability and an equity instrument.
D) It removes of the reference to the expected flow of economic benefits in defining assets and liabilities.

Question 26

Chapter 6 - Measurement of the IASB's conceptual framework includes a discussion of which of the following measurement bases?

A) Historical cost
B) Fair value
C) Value in use
D) All the above

Question 27

Chapter 7 - Presentation and Disclosure of the IASB's conceptual framework indicates that the _____ is the primary source of information about an entity's financial performance for the reporting period.

A) Balance sheet
B) Income statement
C) Statement of owners' equity
D) Statement of comprehensive income

Question 28

Which of the following is not a chapter of the IASB Framework?

A) The objective of financial statements
B) The elements of financial statements
C) Concepts of capital and capital maintenance
D) Concepts of income and expenditure

Question 29

Discuss the factors that have contributed to the need for new approaches to international standard setting.

Question 30

Discuss the role of The International Financial Reporting Interpretations Committee

Question 31

Discuss the IASB-FASB Norwalk agreement.

Question 32

By companies themselves.

Question 33

What is the purpose of the International Accounting Standards Board?

Question 34

Discuss the composition and role of The International Accounting Standards Board.

Question 35

Discuss the duties of the trustees of the International Accounting Standards Committee Foundation.

Question 36

How are IASB standards used by various countries?

Question 37

Discuss the Short-term International Convergence Project

Question 38

Which of the following is not a criterion for an element to be recognized according to Chapter 5 - Recognition and Derecognition of the IASB's conceptual framework?

A) It provides a reliability measurement threshold
B) It provides relevant information
C) It can be measured
D) It faithfully represents the underlying transaction

Question 39

Discuss the approaches a company might take when issuing financial reports to users in foreign countries.

Question 40

Which of the following statements regarding Chapter 4 - The Elements of Financial Statements of the IASB's conceptual framework is false?

A) The focus of the definitions of assets and liabilities moved to the existence of a right (or an obligation) that has the potential to produce (or require an entity to transfer) economic benefits.
B) It requires that a present obligation be as a result of past events.
C) It changes how an entity distinguishes between a liability and an equity instrument.
D) It removes of the reference to the expected flow of economic benefits in defining assets and liabilities.

Question 41

Discuss the qualitative characteristics of accounting information as defined in chapter 2 of the IASB's Framework for the Preparation of Financial Statements. The IASB also described how certain qualities enhance the usefulness of information and how the cost of information affects its usefulness. List those enhancing qualities.

Question 42

On December 18, 2014, as part of its Disclosure Initiative,28 the IASB issued amendments to IAS No. 1 to encourage companies to apply professional judgment in determining what information to disclose and how to structure it in their financial statements. What are the key aspects of this proposal?

Question 43

What is the objective of the joint FASB-IASB Convergence Project?

Question 44

Discuss the objectives of accounting as defined by chapter 1 of the IASB's Framework for the Preparation of Financial Statements.

Question 45

Under rules enacted prior to 2007, how could a foreign company list its securities for sale in U. S. capital markets? How did this rule change?

Question 46

Discuss the concepts of capital and capital maintenance discussed in the Framework for the Preparation of Financial Statements.

Question 47

Discuss IFRS No. 1, "First Time Adoption of International Reporting Standards.

Question 48

Encourage their respective interpretative bodies to coordinate their activities.

Question 49

Discuss the elements of financial statements defined by Chapter 4 of the IASB's Framework for the Preparation of Financial Statements.