SOLUTION MANUAL FOR
fh fh
Intermediate Accounting IFRS 4th Edition by
fh fh fh fh fhfh
Donald E. Kieso, Jerry J. Weygandt, Terry D.
fh fh fh fh fh fhfh fh
Warfield fh
Chapter 1 - 24 fh fh fh
, SOLUTION MANUAL FOR f h fh
Intermediate Accounting IFRS 4th Edition by Donald E. Kieso, Jerry J.
fh fh fh fh fh fh fh fh fh fh
Weygandt, Terry D. Warfield Chapter 1-24
fh fh fh fh fh
CHAPTER 1 fh
Financial Reporting and Accounting Standards
fh fh fh fh
ASSIGNMENTfhCLASSIFICATIONf hTABLE
Topics Questions Conceptsfhfor
Analysis
1. Globalfhmarketsfhandfhfinancialfhreporting. 1,fh2,fh3,fh4 4
2. Objectivefhoffhfinancialfhreporting. 5,fh6,fh7,fh8,fh9,fh10 2,fh3
3. Standard-settingfhorganizations. 11,fh12,fh13,fh14, 1,fh2,fh3,fh5,fh6,fh8,fh9,
15,fh16,fh17,fh18 11
4. Financialfhreportingfhchallenges. 3,fh7,fh8,fh10,fh11,fh12
19,fh20,fh21,fh2
2,
23,fh24,fh25
ASSIGNMENTfhCHARACTERISTICSfhTABLE
Levelfho Timefh(
Item Description ffhDifficul minutes)
ty
CA1.1 IFRSfhandfhstandard-setting. Simple 5–10
CA1.2 IFRSfhandfhstandard-setting. Simple 5–10
CA1.3 Financialfhreportingfhandfhaccountingfhstandards. Simple 15–20
CA1.4 Financialfhaccounting. Simple 15–20
CA1.5 NeedfhforfhIASB. Simple 15–20
CA1.6 IASBfhrolefhinfhstandard-setting. Simple 15–20
CA1.7 Accountingfhnumbersfhandfhthefhenvironment. Simple 10–15
CA1.8 PoliticalizationfhoffhIFRS. Complex 15–20
CA1.9 ModelsfhforfhsettingfhIFRS. Simple 10–15
CA1.10 Economicfhconsequences. Moderate 10–15
CA1.11 Rule-makingfhIssues. Complex 20–25
CA1.12 Financialfhreportingfhpressures. Moderate 25–35
, ANSWERS TO QUESTIONS fh fh
1. Worldfhmarketsfharefhbecomingfhincreasinglyfhintertwined.fhThefhtremendousfhvarietyfhandfhvolumefhoffh
bothfhexportedfhandfhimportedfhgoodsfhindicatesfhthefhextensivefhinvolvementfhinfhinternationalfhtrade.fh
Asf h afhresult,fhthefhmovefhtowardsfhadoptionfhoffhinternationalfhfinancialfhreportingfhstandardsfhhasfhandf
hwillfhcontinuefhinfhthefhfuture.
LO:fh1,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
2. Financialfhaccountingfhmeasures,fhclassifies,fhandfhsummarizesfhinfhreportfhformfhthosefhactivitiesfhandf
hthatfhinformationf h whichf h relatefhtofhthefhenterprisefhasfhaf h wholef h forfhusefhbyfhpartiesfhbothf h internalfha
ndfhexternalfhtofhafhbusinessfhenterprise.fhManagerialfhaccountingfhalsofhmeasures,fhclassifies,fhandfhsu
mmarizesfhinfhreportfhformfhenterprisefhactivities,fhbutfhthefhcommunicationfhisfhforfhthefhusefhoffhinternal,f
hmanagerialfhparties,fhandfhrelatesfhmorefhtofhsubsystemsfhoffhthefhentity.fhManagerialfhaccountingfhisfh
managementfhdecision-
orientedfhandfhdirectedfhmorefhtowardfhproductfhline,fhdivision,fhandfhprofitfhcenterfhreporting.
LO:fh1,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fhAICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
3. Financialfhstatementsfhgenerallyfhreferfhtofhthefhfourfhbasicfhfinancialfhstatements:fhstatementfhoffhfinanc
ialfhposition,fhstatementfhoffhcomprehensivefhincomefh(orfhincomefhstatement),fhstatementfhoffhcashfhflo
ws,fhandfhstatementfhoffhchangesfhinfhequity.fhFinancialfhreportingfhisfhafhbroaderfhconcept;fhitfhincludesfh
thefhbasicfhfinancialfhstatementsfhandfhanyfhotherfhmeansfhoffhcommunicatingfhfinancialfhandfheconomic
fhdatafhtofhinterestedfhexternalfhparties.
LO:fh1,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
4. Iffhafhcompany‘sfhfinancialfhperformancefhisfhmeasuredfhaccurately,fhfairly,fhandfhonfhafhtimelyfhbasis,fhth
efhrightfhmanagersfhandfhcompaniesfharefhablefhtofhattractfhinvestmentfhcapital.fhTofhprovidefhunreliablefh
andfhirrelevantfhinformationfhleadsfhtofhpoorfhcapitalfhallocationfhwhichfhadverselyfhaffectsfhthefhsecuritie
sfhmarket.
LO:fh1,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fhAICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
5. Afhsinglefhsetfhoffhhighfhqualityfhaccountingfhstandardsfhensuresfhadequatefhcomparability.fhInvestorsfha
refhablefhtofhmakefhbetterfhinvestmentfhdecisionsfhiffhtheyfhreceivefhfinancialfhinformationfhfromfhafhU.S.fh
companyfhthatfhisfhcomparablefhtofhanfhinternationalfhcompetitor.
LO:fh2,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
6. Thefhobjectivefhoffhgeneral-
purposefhfinancialfhreportingfhisfhtofhprovidefhfinancialfhinformationfhaboutfhthefhreportingfhentityfhthatfhisf
husefulfhtofhpresentfhandfhpotentialfhequityfhinvestors,fhlenders,fhandfhotherfhcreditorsfhinfhmakingfhdecisi
onsfhaboutfhprovidingfhresourcesfhtofhthefhentity.
LO:fh2,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
7. General-
purposefhfinancialfhstatementsfhprovidefhfinancialfhreportingfhinformationfhtofhafhwidefhvarietyfhoffhusers.f
hTofhbefhcostfheffectivefhinfhprovidingfhthisfhinformation,fhgeneral-
purposefhfinancialfhstatementsfhprovidefhatfhthefhleastfhcostfhthefhmostfhusefulfhinformationfhpossible.
LO:fh2,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
8. Shareholders,fhcreditors,fhsuppliers,fhemployees,fhandfhregulatorsfhallfhusefhgeneral-
purposefhfinancialfhstatements.fhThefhprimaryfhuserfhgroupfhisfhcapitalfhprovidersfh(shareholdersfhandfhc
reditors).
LO:fh2,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
9. Thefhproprietaryfhperspectivefhisfhnotfhconsideredfhappropriatefhbecausefhthisfhperspectivefhgenerallyfh
doesfhnotf h reflectf h af h realisticf h viewf h off h thef h financialf h reportingf h environment.f h Instead,f h thef h ent
ityf h perspectivefhisfhadoptedfhwhichfhisfhconsistentfhwithfhthefhpresentfhbusinessfhenvironmentfhwherefh
mostfhcompaniesfhengagedfhinfhfinancialfhreportingfhhavefhsubstancefhseparatefhandfhdistinctfhfromfhthe
irfhowners.
LO:fh2,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
, QuestionsfhChapterfh1fh(Continued)
10. Thisfhstatementfhisfhnotfhcorrect.fhThefhobjectivefhoffhfinancialfhreportingfhisfhprimarilyfhtofhprovidefhinform
ationfhtofhinvestorsfhinterestedfhinfhassessingfhthefhcompany‘sfhabilityfhtofhgeneratefhnetfhcashfhinflowsfha
ndfhmanagement‘sfhabilityfhtofhprotectfhandfhenhancefhthefhcapitalfhproviders‘f h investments.f h Financial
fhreportingfhshouldfhhelpfhinvestorsfhassessfhthefhamounts,fhtimingfhandfhuncertaintyfhoffhprospectivefhca
shfhinflows.
LO:fh2,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
11. Thefhtwofhorganizationsfhinvolvedfhinfhinternationalfhstandard-
settingfharefhIOSCOfh(InternationalfhOrgani-
fhzationfhoffhSecuritiesfhCommissions)fhandfhthefhIASBfh(InternationalfhAccountingfhStandardsfhBoard.)fh
ThefhIOSCOfhdoesfhnotfhsetfhaccountingfhstandards,fhbutfhensuresfhthatfhthefhglobalfhmarketsfhcanfhoper
atefhinfhanfhefficientfhandfheffectivefhmanner.fhConversely,fhthefhIASB‘sfhmissionfhisfhtofhdevelopfhafhsingl
efhsetfhoffhhighfhquality,fhenforceablefhandfhglobalfhfinancialfhreportingfhstandardsfh(IFRSs)fhforfhgeneral-
purposefhfinancialfhstatements.
LO:fh3,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
12. IOSCOfh(InternationalfhOrganizationfhoffhSecuritiesfhCommissions)fhisfhanfhassociationfhoffhorganizatio
nsfhthatfhregulatefhthef h world‘sfhsecuritiesfhmarkets.fhMembersfharefhgenerallyfhthefhmainfhfinancialfhreg
ulatorsfhforfhafhgivenfhcountry.fhIOSCOfhdoesfhnotfhsetfhaccountingfhstandards.
LO:fh3,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
13. ThefhmissionfhoffhthefhIASBfh(InternationalfhAccountingfhStandardsfhBoard)fhisfhtofhdevelop,fhinfhthefhpub
licfhinterest,fhafhsinglefhsetfhoffhhighfhquality,fhenforceablefhglobalfhinternationalfhfinancialfhreportingfhsta
ndardsfh(IFRSs)fhforfhgeneral-purposefhfinancialfhstatements.
LO:fh3,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fhAICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
14. ThefhpurposefhoffhthefhMonitoringfhBoardfhisfhtofhestablishfhafhlinkfhbetweenfhaccountingf h standard-
settersf h andfhthosefhpublicfhauthoritiesfh(suchfhasfhIOSCO)fhthatfhgenerallyfhoverseefhaccountingfhstan
dard-setters.fhThisfhboardfhalsofhprovidesfhpoliticalfhlegitimacyfhtofhthefhoverallfhorganization.
LO:fh3,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
15. ThefhIASBfhpreliminaryfhviewsfharefhbasedfhonfhresearchfhandfhanalysisfhconductedfhbyfhthef h IASBfhstaf
f.f h IASBfhexposurefhdraftsfharefhissuedfhafterfhthefhBoardfhevaluatesfhresearchfhandfhpublicfhresponsefht
ofhpreliminaryfhviews.fhIASBfhstandardsfharefhissuedfhafterfhthefhBoardfhevaluatesfhresponsesfhtofhthefhe
xposurefhdraft.
LO:fh3,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
16. IASBfhInternationalfhFinancialfhReportingfhStandardsfharefhfinancialfhaccountingfhstandardsfhissuedfhbyf
hthefhIASBfhandfharefhreferredfhtofhasfhInternationalfhFinancialfhReportingfhStandardsfh(IFRS).fhThefhIFR
SfhConceptualfhFrameworkfhforfhFinancialfhReportingfhsetsfhforthfhfundamentalf h objectivesfhandf h conc
eptsfhthatfhthefhBoardfhusesfhinfhdevelopingfhfuturefhstandardsfhoffhfinancialfhreporting.fhThefhintentfhoffht
hefhConceptualfhFrameworkfhisfhtofhformfhafhcohesivefhsetfhoffhinterrelatedfhconceptsfhthatfhwillfhservefha
sfhtoolsfhforfhsolvingfhexistingfhandfhemergingfhproblemsfhinfhafhconsistentfhmanner.
LO:fh3,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fhAICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
17. Infhrankingfhfromfhthefhmostfhauthoritativefhtofhleastfhauthoritative,fhInternationalfhFinancialfhReportingfh
Standardsfharefhthefhmostfhauthoritative,fhfollowedfhbyfhInternationalfhFinancialfhReportingfhStandardfhI
nterpretationsfhandfhthenfhthefhConceptualfhFrameworkfhforfhFinancialfhReporting.
LO:fh3,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
fh fh
Intermediate Accounting IFRS 4th Edition by
fh fh fh fh fhfh
Donald E. Kieso, Jerry J. Weygandt, Terry D.
fh fh fh fh fh fhfh fh
Warfield fh
Chapter 1 - 24 fh fh fh
, SOLUTION MANUAL FOR f h fh
Intermediate Accounting IFRS 4th Edition by Donald E. Kieso, Jerry J.
fh fh fh fh fh fh fh fh fh fh
Weygandt, Terry D. Warfield Chapter 1-24
fh fh fh fh fh
CHAPTER 1 fh
Financial Reporting and Accounting Standards
fh fh fh fh
ASSIGNMENTfhCLASSIFICATIONf hTABLE
Topics Questions Conceptsfhfor
Analysis
1. Globalfhmarketsfhandfhfinancialfhreporting. 1,fh2,fh3,fh4 4
2. Objectivefhoffhfinancialfhreporting. 5,fh6,fh7,fh8,fh9,fh10 2,fh3
3. Standard-settingfhorganizations. 11,fh12,fh13,fh14, 1,fh2,fh3,fh5,fh6,fh8,fh9,
15,fh16,fh17,fh18 11
4. Financialfhreportingfhchallenges. 3,fh7,fh8,fh10,fh11,fh12
19,fh20,fh21,fh2
2,
23,fh24,fh25
ASSIGNMENTfhCHARACTERISTICSfhTABLE
Levelfho Timefh(
Item Description ffhDifficul minutes)
ty
CA1.1 IFRSfhandfhstandard-setting. Simple 5–10
CA1.2 IFRSfhandfhstandard-setting. Simple 5–10
CA1.3 Financialfhreportingfhandfhaccountingfhstandards. Simple 15–20
CA1.4 Financialfhaccounting. Simple 15–20
CA1.5 NeedfhforfhIASB. Simple 15–20
CA1.6 IASBfhrolefhinfhstandard-setting. Simple 15–20
CA1.7 Accountingfhnumbersfhandfhthefhenvironment. Simple 10–15
CA1.8 PoliticalizationfhoffhIFRS. Complex 15–20
CA1.9 ModelsfhforfhsettingfhIFRS. Simple 10–15
CA1.10 Economicfhconsequences. Moderate 10–15
CA1.11 Rule-makingfhIssues. Complex 20–25
CA1.12 Financialfhreportingfhpressures. Moderate 25–35
, ANSWERS TO QUESTIONS fh fh
1. Worldfhmarketsfharefhbecomingfhincreasinglyfhintertwined.fhThefhtremendousfhvarietyfhandfhvolumefhoffh
bothfhexportedfhandfhimportedfhgoodsfhindicatesfhthefhextensivefhinvolvementfhinfhinternationalfhtrade.fh
Asf h afhresult,fhthefhmovefhtowardsfhadoptionfhoffhinternationalfhfinancialfhreportingfhstandardsfhhasfhandf
hwillfhcontinuefhinfhthefhfuture.
LO:fh1,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
2. Financialfhaccountingfhmeasures,fhclassifies,fhandfhsummarizesfhinfhreportfhformfhthosefhactivitiesfhandf
hthatfhinformationf h whichf h relatefhtofhthefhenterprisefhasfhaf h wholef h forfhusefhbyfhpartiesfhbothf h internalfha
ndfhexternalfhtofhafhbusinessfhenterprise.fhManagerialfhaccountingfhalsofhmeasures,fhclassifies,fhandfhsu
mmarizesfhinfhreportfhformfhenterprisefhactivities,fhbutfhthefhcommunicationfhisfhforfhthefhusefhoffhinternal,f
hmanagerialfhparties,fhandfhrelatesfhmorefhtofhsubsystemsfhoffhthefhentity.fhManagerialfhaccountingfhisfh
managementfhdecision-
orientedfhandfhdirectedfhmorefhtowardfhproductfhline,fhdivision,fhandfhprofitfhcenterfhreporting.
LO:fh1,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fhAICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
3. Financialfhstatementsfhgenerallyfhreferfhtofhthefhfourfhbasicfhfinancialfhstatements:fhstatementfhoffhfinanc
ialfhposition,fhstatementfhoffhcomprehensivefhincomefh(orfhincomefhstatement),fhstatementfhoffhcashfhflo
ws,fhandfhstatementfhoffhchangesfhinfhequity.fhFinancialfhreportingfhisfhafhbroaderfhconcept;fhitfhincludesfh
thefhbasicfhfinancialfhstatementsfhandfhanyfhotherfhmeansfhoffhcommunicatingfhfinancialfhandfheconomic
fhdatafhtofhinterestedfhexternalfhparties.
LO:fh1,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
4. Iffhafhcompany‘sfhfinancialfhperformancefhisfhmeasuredfhaccurately,fhfairly,fhandfhonfhafhtimelyfhbasis,fhth
efhrightfhmanagersfhandfhcompaniesfharefhablefhtofhattractfhinvestmentfhcapital.fhTofhprovidefhunreliablefh
andfhirrelevantfhinformationfhleadsfhtofhpoorfhcapitalfhallocationfhwhichfhadverselyfhaffectsfhthefhsecuritie
sfhmarket.
LO:fh1,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fhAICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
5. Afhsinglefhsetfhoffhhighfhqualityfhaccountingfhstandardsfhensuresfhadequatefhcomparability.fhInvestorsfha
refhablefhtofhmakefhbetterfhinvestmentfhdecisionsfhiffhtheyfhreceivefhfinancialfhinformationfhfromfhafhU.S.fh
companyfhthatfhisfhcomparablefhtofhanfhinternationalfhcompetitor.
LO:fh2,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
6. Thefhobjectivefhoffhgeneral-
purposefhfinancialfhreportingfhisfhtofhprovidefhfinancialfhinformationfhaboutfhthefhreportingfhentityfhthatfhisf
husefulfhtofhpresentfhandfhpotentialfhequityfhinvestors,fhlenders,fhandfhotherfhcreditorsfhinfhmakingfhdecisi
onsfhaboutfhprovidingfhresourcesfhtofhthefhentity.
LO:fh2,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
7. General-
purposefhfinancialfhstatementsfhprovidefhfinancialfhreportingfhinformationfhtofhafhwidefhvarietyfhoffhusers.f
hTofhbefhcostfheffectivefhinfhprovidingfhthisfhinformation,fhgeneral-
purposefhfinancialfhstatementsfhprovidefhatfhthefhleastfhcostfhthefhmostfhusefulfhinformationfhpossible.
LO:fh2,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
8. Shareholders,fhcreditors,fhsuppliers,fhemployees,fhandfhregulatorsfhallfhusefhgeneral-
purposefhfinancialfhstatements.fhThefhprimaryfhuserfhgroupfhisfhcapitalfhprovidersfh(shareholdersfhandfhc
reditors).
LO:fh2,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
9. Thefhproprietaryfhperspectivefhisfhnotfhconsideredfhappropriatefhbecausefhthisfhperspectivefhgenerallyfh
doesfhnotf h reflectf h af h realisticf h viewf h off h thef h financialf h reportingf h environment.f h Instead,f h thef h ent
ityf h perspectivefhisfhadoptedfhwhichfhisfhconsistentfhwithfhthefhpresentfhbusinessfhenvironmentfhwherefh
mostfhcompaniesfhengagedfhinfhfinancialfhreportingfhhavefhsubstancefhseparatefhandfhdistinctfhfromfhthe
irfhowners.
LO:fh2,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
, QuestionsfhChapterfh1fh(Continued)
10. Thisfhstatementfhisfhnotfhcorrect.fhThefhobjectivefhoffhfinancialfhreportingfhisfhprimarilyfhtofhprovidefhinform
ationfhtofhinvestorsfhinterestedfhinfhassessingfhthefhcompany‘sfhabilityfhtofhgeneratefhnetfhcashfhinflowsfha
ndfhmanagement‘sfhabilityfhtofhprotectfhandfhenhancefhthefhcapitalfhproviders‘f h investments.f h Financial
fhreportingfhshouldfhhelpfhinvestorsfhassessfhthefhamounts,fhtimingfhandfhuncertaintyfhoffhprospectivefhca
shfhinflows.
LO:fh2,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
11. Thefhtwofhorganizationsfhinvolvedfhinfhinternationalfhstandard-
settingfharefhIOSCOfh(InternationalfhOrgani-
fhzationfhoffhSecuritiesfhCommissions)fhandfhthefhIASBfh(InternationalfhAccountingfhStandardsfhBoard.)fh
ThefhIOSCOfhdoesfhnotfhsetfhaccountingfhstandards,fhbutfhensuresfhthatfhthefhglobalfhmarketsfhcanfhoper
atefhinfhanfhefficientfhandfheffectivefhmanner.fhConversely,fhthefhIASB‘sfhmissionfhisfhtofhdevelopfhafhsingl
efhsetfhoffhhighfhquality,fhenforceablefhandfhglobalfhfinancialfhreportingfhstandardsfh(IFRSs)fhforfhgeneral-
purposefhfinancialfhstatements.
LO:fh3,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
12. IOSCOfh(InternationalfhOrganizationfhoffhSecuritiesfhCommissions)fhisfhanfhassociationfhoffhorganizatio
nsfhthatfhregulatefhthef h world‘sfhsecuritiesfhmarkets.fhMembersfharefhgenerallyfhthefhmainfhfinancialfhreg
ulatorsfhforfhafhgivenfhcountry.fhIOSCOfhdoesfhnotfhsetfhaccountingfhstandards.
LO:fh3,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
13. ThefhmissionfhoffhthefhIASBfh(InternationalfhAccountingfhStandardsfhBoard)fhisfhtofhdevelop,fhinfhthefhpub
licfhinterest,fhafhsinglefhsetfhoffhhighfhquality,fhenforceablefhglobalfhinternationalfhfinancialfhreportingfhsta
ndardsfh(IFRSs)fhforfhgeneral-purposefhfinancialfhstatements.
LO:fh3,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fhAICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
14. ThefhpurposefhoffhthefhMonitoringfhBoardfhisfhtofhestablishfhafhlinkfhbetweenfhaccountingf h standard-
settersf h andfhthosefhpublicfhauthoritiesfh(suchfhasfhIOSCO)fhthatfhgenerallyfhoverseefhaccountingfhstan
dard-setters.fhThisfhboardfhalsofhprovidesfhpoliticalfhlegitimacyfhtofhthefhoverallfhorganization.
LO:fh3,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
15. ThefhIASBfhpreliminaryfhviewsfharefhbasedfhonfhresearchfhandfhanalysisfhconductedfhbyfhthef h IASBfhstaf
f.f h IASBfhexposurefhdraftsfharefhissuedfhafterfhthefhBoardfhevaluatesfhresearchfhandfhpublicfhresponsefht
ofhpreliminaryfhviews.fhIASBfhstandardsfharefhissuedfhafterfhthefhBoardfhevaluatesfhresponsesfhtofhthefhe
xposurefhdraft.
LO:fh3,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
16. IASBfhInternationalfhFinancialfhReportingfhStandardsfharefhfinancialfhaccountingfhstandardsfhissuedfhbyf
hthefhIASBfhandfharefhreferredfhtofhasfhInternationalfhFinancialfhReportingfhStandardsfh(IFRS).fhThefhIFR
SfhConceptualfhFrameworkfhforfhFinancialfhReportingfhsetsfhforthfhfundamentalf h objectivesfhandf h conc
eptsfhthatfhthefhBoardfhusesfhinfhdevelopingfhfuturefhstandardsfhoffhfinancialfhreporting.fhThefhintentfhoffht
hefhConceptualfhFrameworkfhisfhtofhformfhafhcohesivefhsetfhoffhinterrelatedfhconceptsfhthatfhwillfhservefha
sfhtoolsfhforfhsolvingfhexistingfhandfhemergingfhproblemsfhinfhafhconsistentfhmanner.
LO:fh3,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fhAICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
17. Infhrankingfhfromfhthefhmostfhauthoritativefhtofhleastfhauthoritative,fhInternationalfhFinancialfhReportingfh
Standardsfharefhthefhmostfhauthoritative,fhfollowedfhbyfhInternationalfhFinancialfhReportingfhStandardfhI
nterpretationsfhandfhthenfhthefhConceptualfhFrameworkfhforfhFinancialfhReporting.
LO:fh3,fhBloom:fhK,fhDifficulty:fhSimple,fhTime:fh3-5,fhAACSB:fhNone,fhAICPAfhBB:fhNone,fh AICPAfhFC:fhReporting,fhAICPAfhPC:fhCommunication
