Testbank
Financial reporting
4th edition
by
Loftus et al.
, Chapter 1: Accounting regulation and the Conceptual Framework
Chapter 1: Accounting regulation and the Conceptual Framework
Multiple choice questions
1. The Corporations Act requires the preparation of a financial report and directors' report each financial
year by all:
a. small proprietary companies.
b. non-disclosing entities.
*c. public companies.
d. private companies.
General Feedback:
Learning objective 1.1 understand the major sources of regulation of financial reporting in
Australia.
2. The New Zealand External Reporting Board (XRB) accounting framework classify Tier 1 not-for-
profit public benefit entities (PBEs) as:
a. entities allowed by law to use cash accounting.
b. non-large.
c. expenses <= $2m.
*d. publicly accountable, or large.
General Feedback:
Learning objective 1.3: Identify the roles of the key bodies involved in the financial reporting
framework in New Zealand.
3. Which of the following statements is false?
*a. The IFRS Advisory Council is directly accountable to the Monitoring Board.
b. Australia adopted international accounting standards issued on or after 1 January 2005.
c. The IASB and IFRS Interpretations Committee are appointed and overseen by a
geographically and professionally diverse group called the IFRS Foundation Trustees.
d. The IASB is an independent standard-setting board that develops and approves International
Financial Reporting Standards.
General Feedback:
Learning objective 1.4: explain the structure, role and processes of the International Accounting
Standards Board (IASB) and the IFRS Interpretations Committee (IFRIC).
4. Which of the following is not a chapter in the IASB's Conceptual Framework?
1.2
Financial reporting
4th edition
by
Loftus et al.
, Chapter 1: Accounting regulation and the Conceptual Framework
Chapter 1: Accounting regulation and the Conceptual Framework
Multiple choice questions
1. The Corporations Act requires the preparation of a financial report and directors' report each financial
year by all:
a. small proprietary companies.
b. non-disclosing entities.
*c. public companies.
d. private companies.
General Feedback:
Learning objective 1.1 understand the major sources of regulation of financial reporting in
Australia.
2. The New Zealand External Reporting Board (XRB) accounting framework classify Tier 1 not-for-
profit public benefit entities (PBEs) as:
a. entities allowed by law to use cash accounting.
b. non-large.
c. expenses <= $2m.
*d. publicly accountable, or large.
General Feedback:
Learning objective 1.3: Identify the roles of the key bodies involved in the financial reporting
framework in New Zealand.
3. Which of the following statements is false?
*a. The IFRS Advisory Council is directly accountable to the Monitoring Board.
b. Australia adopted international accounting standards issued on or after 1 January 2005.
c. The IASB and IFRS Interpretations Committee are appointed and overseen by a
geographically and professionally diverse group called the IFRS Foundation Trustees.
d. The IASB is an independent standard-setting board that develops and approves International
Financial Reporting Standards.
General Feedback:
Learning objective 1.4: explain the structure, role and processes of the International Accounting
Standards Board (IASB) and the IFRS Interpretations Committee (IFRIC).
4. Which of the following is not a chapter in the IASB's Conceptual Framework?
1.2
