IFRS Questions Exam 1 With Solutions

IFRS Questions Exam 1 With Solutions

IFRS |stands |for: |

(a) |International |Federation |of |Reporting |Services.

(b) |Independent |Financial |Reporting |Standards. |

(c) |International |Financial |Reporting |Standards. |

(d) |Integrated |Financial |Reporting |Services. |- |VERIFIED |ANSWERS |**✔c



The |major |key |players |on |the |international |side |are |the: |(a) |IASB |and |FASB. |

(b) |IOSCO |and |the |SEC. |

(c) |SEC |and |FASB. |

(d) |IASB |and |IOSCO. |- |VERIFIED |ANSWERS |**✔d



IFRS |is |comprised |of: |

(a) |International |Financial |Reporting |Standards |and |FASB |Financial |Reporting |Standards. |

(b) |International |Financial |Reporting |Standards, |International |Accounting |Standards, |and |Interna- |
tional |Accounting |Interpretations. |

(c) |International |Accounting |Standards |and |International |Accounting |Interpretations. |

(d) |FASB |Financial |Reporting |Standards |and |International |Accounting |Standards. |- |VERIFIED |
ANSWERS |**✔b



The |authoritative |status |of |the |Framework |for |the |Preparation |and |Presentation |of |Financial |State- |
ments |is |as |follows: |

(a) |It |is |used |when |there |is |no |standard |or |interpretation |related |to |the |reporting |issues |under |
consideration. |

(b) |It |is |not |as |authoritative |as |a |standard |but |takes |precedence |over |any |interpretation |related |to |
the |reporting |issue. |

(c) |It |takes |precedence |over |all |other |authoritative |literature. |

(d) |It |has |no |authoritative |status. |- |VERIFIED |ANSWERS |**✔a

, Which |of |the |following |statements |is |true? |

(a) |The |IASB |has |the |same |number |of |members |as |the |FASB. |

(b) |The |IASB |structure |has |both |advisory |and |interpretation |functions, |but |no |trustees. |

(c) |The |IASB |has |been |in |existence |longer |than |the |FASB. |(d) |The |IASB |structure |is |quite |similar |to |
the |FASB's, |except |the |IASB |has |a |larger |number |of |board |members. |- |VERIFIED |ANSWERS |**✔d



Which |of |the |following |statements |about |the |IASB |and |FASB |conceptual |frameworks |is |not |correct?

(a) |The |IASB |conceptual |framework |does |not |identify |the |element |comprehensive |income. |

(b) |The |existing |IASB |and |FASB |conceptual |frameworks |are |organized |in |similar |ways. |

(c) |The |FASB |and |IASB |agree |that |the |objective |of |financial |reporting |is |to |provide |useful |informa- |
tion |to |investors |and |creditors. |

(d) |IFRS |does |not |allow |use |of |fair |value |as |a |measurement |basis. |- |VERIFIED |ANSWERS |**✔d



Which |of |the |following |statements |is |false? |

(a) |The |monetary |unit |assumption |is |used |under |IFRS. |(b) |Under |IFRS, |companies |may |use |fair |
value |for |property, |plant, |and |equipment. |

(c) |The |FASB |and |IASB |are |working |on |a |joint |conceptual |framework |project. |

(d) |Under |IFRS, |there |are |the |same |number |of |financial |statement |elements |as |in |GAAP. |- |VERIFIED
|ANSWERS |**✔d




Companies |that |use |IFRS: |

(a) |must |report |all |their |assets |on |the |statement |of |financial |position |(balance |sheet) |at |fair |value. |

(b) |may |report |property, |plant, |and |equipment |and |natural |resources |at |fair |value. |

(c) |may |refer |to |a |concept |statement |on |estimating |fair |values |when |market |data |are |not |available.
|



(d) |may |only |use |historical |cost |as |the |measurement |basis |in |financial |reporting. |- |VERIFIED |
ANSWERS |**✔b



The |issues |that |the |FASB |and |IASB |must |address |in |developing |a |common |conceptual |framework |
include |all |of |the |following |except: |

(a) |should |the |characteristic |of |relevance |be |traded-off |in |favor |of |information |that |is |verifiable? |

(b) |should |a |single |measurement |method |such |as |historical |cost |be |used? |