IFRS exam 1 (A+ Guaranteed)

1. What does IFRS stand for? a. International Financial Reporting Structure b. International Financial Reporting Standards c. Intercontinental Financial Reporting Standards d. Intercontinental Finance Reporting Structure correct answers b 2. What is the goal of IFRS? correct answers The goal of IFRS is to achieve a single set of high-quality, common accounting standards used around the world. 3. Identify the correct statement about IFRS usage in the US: a. IFRS is intended for publicly accountable entities and has not yet been adopted in the US. b. IFRS is intended for non publicly accountable entities and has not yet been adopted in the US. c. IFRS is intended for public accountable entities and will be adopted by the US in 2016. correct answers a 4. What does IFRS for SMEs stand for and for whom are these standards intended? correct answers IFRS for SMEs stands for International Financial Reporting Standards for Small and Medium-sized Enterprises. These standards are intended for entities that do not have public accountability. These standards have been accepted by the AICPA as an acceptable alternative reporting standard to US GAAP for non-SEC registrants. 5. Is US GAAP better and of higher quality than IFRS? correct answers While this is an opinion question, it cannot be definitively stated that US GAAP is better or of higher quality than IFRS or that IFRS is better or of higher quality than US GAAP. 6. US GAAP and IFRS are more alike than different for most commonly encountered transactions. a. True b. False correct answers a 7. List one advantage that some could argue that IFRS standard setters had in establishing international standards. correct answers IFRS standard setters had the following advantages in establishing international standards: ► Being able to obtain a greater amount of global perspective. ► Being able to draw upon the latest standards. ► Being able to remedy perceived problems identified in practice. ► Having an annual improvement process to enhance the clarity and consistency of IFRS, which allows the consideration of current thinking and practice. ► Being able to focus more intently on a principles orientation. 8. As a general rule: a. IFRS standards are broader with less rules and with limited interpretive guidance.