CPA PREP - IF1 questions well answered
to pass
Main qualitative characteristics in ASPE - correct answer ✔✔1. Understandability
2. Relevance
3. Reliability
4. Comparability
Conservatism is the sub-characteristic of which main qualitative characteristic in ASPE - correct answer
✔✔Reliability
Timeliness is a subset of which main characteristic in ASPE - correct answer ✔✔Relevance (distinct and
separate enhancing characteristic)
Purpose of Canadian Accounting Standards Board (AcSB) - correct answer ✔✔provide accounting
standards for all Canadian entities outside the public sector
Responsibility of the International Accounting Standards Board (IASB) - correct answer ✔✔Developing
IFRS
Role of Canadian Securities Administrator (CSA) - correct answer ✔✔Providing a harmonized approach
to securities regulation in Canada
XBRL use in financial reporting - correct answer ✔✔allows financial statements and notes to be
uploaded and searched in a common format
Which IFRS standard will be replacing IFRS 4? - correct answer ✔✔IFRS 17 Insurance Contracts
Objective of the AcSB - correct answer ✔✔Facilitate capital allocation process in both the business and
not-for-profit sectors through improved information
to pass
Main qualitative characteristics in ASPE - correct answer ✔✔1. Understandability
2. Relevance
3. Reliability
4. Comparability
Conservatism is the sub-characteristic of which main qualitative characteristic in ASPE - correct answer
✔✔Reliability
Timeliness is a subset of which main characteristic in ASPE - correct answer ✔✔Relevance (distinct and
separate enhancing characteristic)
Purpose of Canadian Accounting Standards Board (AcSB) - correct answer ✔✔provide accounting
standards for all Canadian entities outside the public sector
Responsibility of the International Accounting Standards Board (IASB) - correct answer ✔✔Developing
IFRS
Role of Canadian Securities Administrator (CSA) - correct answer ✔✔Providing a harmonized approach
to securities regulation in Canada
XBRL use in financial reporting - correct answer ✔✔allows financial statements and notes to be
uploaded and searched in a common format
Which IFRS standard will be replacing IFRS 4? - correct answer ✔✔IFRS 17 Insurance Contracts
Objective of the AcSB - correct answer ✔✔Facilitate capital allocation process in both the business and
not-for-profit sectors through improved information
