Exam 1: An Overview of the Australian External Reporting Environment

The Australian Accounting Standards Board (AASB) issues only one set of accounting standards which have general applicability to the private, public and not-for-profit sectors:

The regulation of accounting can be argued to be necessary to protect the information rights of parties not involved in the day-to-day operations of the organisation:

An argument to support the requirement that all companies over a certain size should adhere to accounting standards is:

What option(s) does a company have when directors are of the view that compliance with accounting standards does not generate a true and fair view financial statements?

Responsibility for the preparation of the financial information of a company rests with:

The publication of a standard, exposure draft, or final SIC interpretation requires approval by:

The AASB has responsibility for developing a conceptual framework, among other things. AASB are initials that stand for:

Section 296 of The Corporations Act requires (all or in part):

Which of the following most accurately describes the process of issuing an IASB standard?

Which of the following statement(s) is/are true with respect to the differences between IFRS and US generally accepted accounting standards?

The Corporations Act requires which of the following to be included in a Directors' Declaration? I. State whether in their opinion the financial statements comply with accounting standards and the Corporations Act. II. State whether in their opinion the financial statements give a true and fair view of the financial position and financial performance of the entity. III. State whether or not in their opinion, when the declaration was made, there were reasonable grounds to believe that the company would be able to pay its debts as they become due. IV. State details of directors' emoluments. V. State principal activities of the entity.

In recent times the AASB has been reluctant to include alternative options within standards. This means:

The AASB's responsibilities include:

There has been a trend by governments and government departments towards adopting specialised public sector accounting techniques:

The financial statements and supporting notes included in an annual report presented to shareholders at a company's annual general meeting is an example of a general-purpose report:

The International Accounting Standards Board website explains how the IASB believes its relationship with national standards setters should be conducted. It notes that:

Some of the costs of international convergence of accounting standards include:

The Financial Reporting Panel (FRP) established under the auspices of the Australian Securities and Investments Commission (ASIC) intends to provide:

Arguments against the regulation of accounting information include:

The only body with the power to veto a standard recommended by the AASB is: