Test Bank For Applying IFRS Standards, 5th Edition( by Ruth Picker, Leo van der Tas) All Chapters 1-24| Latest Edition 2026

Test Bank For Applying Ifrs Standards, 5th
Edition( By Ruth Picker, Leo Van Der Tas) All
Chapters 1-24| Latest Edition 2025

,
,chapter 1

the iasb and its conceptual framework


learning objectives

1.1 describe the organisational structure of the key players in setting international financial reporting
standards (ifrss)

1.2 describe the purpose of a conceptual framework – who uses it and why

1.3 explain the qualitative characteristics that make information in financial statements useful

1.4 discuss the going concern assumption underlying the preparation of financial statements

1.5 define the basic elements in financial statements – assets, liabilities, equity, income and expenses

1.6 explain the principles for recognising the elements of financial statements

1.7 distinguish between alternative bases for measuring the elements of financial
statements

1.8 outline concepts of capital.




2

, multiple choice questions


1. which of the following statements is incorrect?
learning objective 1.1 describe the organisational structure of the key players in setting ifrss:
*a. ans:the international accounting standards board was replaced by the international standards
committee in 2001.
b. the international accounting standards board is funded by the iasc
foundation.
c. the responsibility for issuing international financial reporting standards lies with the
international accounting standards board.
d. members of the international accounting standards board are appointed by the ifrs
foundation.


2. which of the following bodies report to the ifrs foundation?
learning objective 1.1 describe the organisational structure of the key players in setting ifrss:
a. the iasb and aasb
b. the iasb, aasb and the ifrs advisory council
c. the iasb and the fasb
*d. ans:the iasb and the ifrs advisory council
3. which of the following statements is incorrect?
learning objective 1.2 describe the purpose of a conceptual framework – who uses it and why
a. the framework identifies the qualitative characteristics that make information in
financial statements useful.
*b. ans:the framework defines principles for accounting recognition, measurement and
disclosure.
c. the framework defines the objective of financial statements.
d. the framework defines the basic elements of financial statements and the concepts
for recognizing and measuring them in financial statements.

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. ans: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.

a
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. ans: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.