CPA PREP - IF1 questions and answers
Main qualitative characteristics in ASPE - Answer1. Understandability
2. Relevance
3. Reliability
4. Comparibility
Conservatism is the sub-characteristic of which main qualitative characteristic in ASPE -
AnswerReliability
Timeliness is a subset of which main characteristic in ASPE - AnswerRelevance (distinct and separate
enhancing characteristic)
Purpose of Canadian Accounting Standards Board (AcSB) - Answerprovide accounting standards for
all Canadian entities outside the public sector
Responsibility of the International Accounting Standards Board (IASB) - AnswerDeveloping IFRS
Role of Canadian Securities Administrator (CSA) - AnswerProviding a harmonized approach to
securities regulation in Canada
XBRL use in financial reporting - Answerallows financial statements and notes to be uploaded and
searched in a common format
Which IFRS standard will be replacing IFRS 4? - AnswerIFRS 17 Insurance Contracts
Objective of the AcSB - AnswerFacilitate capital allocation process in both the business and not-for-
profit sectors through improved information
Purpose of bold text in IFRS - Answerhighlight policy pronouncements
Incidental transaction - Answera transaction that is not part of the ordinary activities
Criteria for capitalizing development expenditures - Answer1. Technical feasibility
Main qualitative characteristics in ASPE - Answer1. Understandability
2. Relevance
3. Reliability
4. Comparibility
Conservatism is the sub-characteristic of which main qualitative characteristic in ASPE -
AnswerReliability
Timeliness is a subset of which main characteristic in ASPE - AnswerRelevance (distinct and separate
enhancing characteristic)
Purpose of Canadian Accounting Standards Board (AcSB) - Answerprovide accounting standards for
all Canadian entities outside the public sector
Responsibility of the International Accounting Standards Board (IASB) - AnswerDeveloping IFRS
Role of Canadian Securities Administrator (CSA) - AnswerProviding a harmonized approach to
securities regulation in Canada
XBRL use in financial reporting - Answerallows financial statements and notes to be uploaded and
searched in a common format
Which IFRS standard will be replacing IFRS 4? - AnswerIFRS 17 Insurance Contracts
Objective of the AcSB - AnswerFacilitate capital allocation process in both the business and not-for-
profit sectors through improved information
Purpose of bold text in IFRS - Answerhighlight policy pronouncements
Incidental transaction - Answera transaction that is not part of the ordinary activities
Criteria for capitalizing development expenditures - Answer1. Technical feasibility
