Test Bank For Applying IFRS Standards 5th Edition by Ruth Picker, Leo van der Tas & David Kolitz,ISBN;9781394235933,All Chapters Fully Covered,Complete Guide A+,Latest Version 2025.

TEST BANK%vi




Applying IFRS Standards
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by Ruth Picker, Leo van der Tas, David Kolitz
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5th Edition
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,CHAPTER %vi1

The %viIASB %viand %viits %viConceptual
%viFramework




Learning %viObjectives

1.1 Describe %vithe %viorganisational %vistructure %viof %vithe %vikey %viplayers %viin %visetting
%viInternational %viFinancial %viReporting %viStandards %vi(IFRSs)




1.2 Describe %vithe %vipurpose %viof %via %viconceptual %viframework %vi– %viwho %viuses %viit %viand %viwhy

1.3 Explain %vithe %viqualitative %vicharacteristics %vithat %vimake %viinformation %viin %vifinancial
%vistatements %viuseful



1.4 Discuss %vithe %vigoing %viconcern %viassumption %viunderlying %vithe %vipreparation %viof %vifinancial
%vistatements




1.5 Define %vithe %vibasic %vielements %viin %vifinancial %vistatements %vi– %viassets, %viliabilities, %viequity,
%viincome %viand %viexpenses



1.6 Explain %vithe %viprinciples %vifor %virecognising %vithe %vielements %viof %vifinancial %vistatements

1.7 Distinguish %vibetween %vialternative %vibases %vifor %vimeasuring %vithe %vielements %viof
%vifinancial %vistatements



1.8 Outline %viconcepts %viof %vicapital.

,Multiple %viChoice %viQuestions


1. Which %viof %vithe %vifollowing %vistatements %viis %viINCORRECT?
Learning %viObjective %vi1.1 %viDescribe %vithe %viorganisational %vistructure %viof %vithe %vikey
%viplayers %viin %visetting %viIFRSs:

*a. The %viInternational %viAccounting %viStandards %viBoard %viwas %vireplaced %viby %vithe
%viInternational %viStandards %viCommittee %viin %vi2001.

b. The %viInternational %viAccounting %viStandards %viBoard %viis %vifunded %viby
%vithe %viIASC %viFoundation.

c. The %viresponsibility %vifor %viissuing %viInternational %viFinancial %viReporting %viStandards
%vilies %viwith %vithe %viInternational %viAccounting %viStandards %viBoard.

d. Members %viof %vithe %viInternational %viAccounting %viStandards %viBoard %viare
%viappointed %viby %vithe %viIFRS %viFoundation.




2. Which %viof %vithe %vifollowing %vibodies %vireport %vito %vithe %viIFRS %viFoundation?
Learning %viObjective %vi1.1 %viDescribe %vithe %viorganisational %vistructure %viof %vithe %vikey
%viplayers %viin %visetting %viIFRSs:

a. The %viIASB %viand %viAASB
b. The %viIASB, %viAASB %viand %vithe %viIFRS %viAdvisory %viCouncil
c. The %viIASB %viand %vithe %viFASB
*d. The %viIASB %viand %vithe %viIFRS %viAdvisory %viCouncil


3. Which %viof %vithe %vifollowing %vistatements %viis %viINCORRECT?
Learning %viObjective %vi1.2 %viDescribe %vithe %vipurpose %viof %via %viconceptual %viframework %vi–
%viwho %viuses %viit %viand %viwhy

a. The %viFramework %viidentifies %vithe %viqualitative %vicharacteristics %vithat %vimake
%viinformation %viin %vifinancial %vistatements %viuseful.

*b. The %viFramework %videfines %viprinciples %vifor %viaccounting %virecognition,
%vimeasurement %viand %vidisclosure.

c. The %viFramework %videfines %vithe %viobjective %viof %vifinancial %vistatements.
d. The %viFramework %videfines %vithe %vibasic %vielements %viof %vifinancial
%vistatements %viand %vithe %viconcepts %vifor %virecognizing %viand %vimeasuring

%vithem %viin %vifinancial %vistatements.

, 4. Which of the following statements is CORRECT?
Learning Objective 1.2 Describe the purpose of a conceptual framework – who uses it
and why
*a. IAS 8 Accounting Policies, Changes in Accounting Estimates, and Errors
requires that The Framework be followed in the absence of a specific standard or
interpretation.
b. IAS 8 Accounting Policies, Changes in Accounting Estimates, and Errors
recommends, but does not require The Framework to be followed in the absence
of a specific standard or interpretation.
c. The Framework is used solely by the IASB when considering new accounting
issues.
d. The Framework is non-binding guidance which does not have to be followed by
preparers of financial statements.


5. The Framework focuses on:
Learning Objective 1.2 Describe the purpose of a conceptual framework – who uses it
and why
a. privately owned business entities only.
*b. business entities only, including private and state owned business entities.
c. business entities, although the concepts may be applied to other types of entities,
such as not-for profit entities.
d. all types of entities, including business entities, government and not-for profit
entities.


6. General Purpose Financial Statements:
Learning Objective 1.2 Describe the purpose of a conceptual framework – who uses it
and why
a. are only necessary for users who do not have the power to obtain information in
addition to that contained within the General Purpose Financial Statement.
b. provide all the information that users may need to make economic decisions.
c. focus on disclosing information relevant to assessing the ability of an entity to
generate future cash flows.
*d. meet the information needs that are common to all users.