Question 1

The Memorandum of Understanding released by the IASB and FASB that detailed their commitment to converged standards is known as

Accepted Answer

A)  The "Norwalk Agreement" 
B)  The "FASB/IASB Convergence Memo" 
C)  The "Accounting Agreement of 2002" 
D)  The "International Accounting Treaty" 
A)  The "Norwalk Agreement" 
B)  The "FASB/IASB Convergence Memo" 
C)  The "Accounting Agreement of 2002" 
D)  The "International Accounting Treaty" A

Question 2

The IASB was able to complete its joint projects by the established deadline in May 2011.

Accepted Answer

A) True 
 B)False  False

Question 3

Explain the role that the U.S. SEC played in the development of the IASB and the development of international accounting standards.

Accepted Answer

The U.S. SEC made several significant contributions to the development of the IASB. First, the U.S. SEC joined the IOSCO, which made major contributions to the development of the IASB. Some of the developments that occurred because of IOSCO were improved standards, as well as reducing the flexibility of IAS. Secondly, the U.S. SEC had a large influence in the structure of the new IASB that was developed from the Strategy Working Party. The U.S. SEC wrote a letter explaining that the Board needed to be small, highly trained, full time, and independent.

Question 4

China was one of the original nine countries that were members of the IASC.

Accepted Answer

A) True 
 B)False

Question 5

The predecessor to the IASB (International Accounting Standards Board) was the

Accepted Answer

A)  IACEW 
B)  IASC 
C)  IFAC 
D)  AISG 
A)  IACEW 
B)  IASC 
C)  IFAC 
D)  AISG

Question 6

What are the three main responsibilities of the IASB board of trustees?

Accepted Answer

The answer of What are the three main responsibilities of...

Question 7

In regards to the overall structure of the IASB, which organization oversees the Board and acts as the governing body?

Accepted Answer

A)  The IASB 
B)  The IFRS Advisory Council 
C)  The IFRS Foundation Trustees 
D)  The Monitoring Board 
A)  The IASB 
B)  The IFRS Advisory Council 
C)  The IFRS Foundation Trustees 
D)  The Monitoring Board

Question 8

Which of the following was the primary criterion for determining board members with the development of the new standard-setting structure in 2000.

Accepted Answer

A)  Geographical location (to achieve equal representation for convergence) 
B)  Previous experience on the IASC 
C)  Technical expertise 
D)  Recommendation from the local securities commission 
A)  Geographical location (to achieve equal representation for convergence) 
B)  Previous experience on the IASC 
C)  Technical expertise 
D)  Recommendation from the local securities commission

Question 9

The IASB will consider if a possible standard to be developed can be high quality and increase the possibility of convergence in which stage of due process?

Accepted Answer

A)  Setting the agenda 
B)  Planning the project 
C)  Developing and publishing the standard 
D)  Post-issuance activities 
A)  Setting the agenda 
B)  Planning the project 
C)  Developing and publishing the standard 
D)  Post-issuance activities

Question 10

The IASB is required to publish a discussion paper for each potential standard

Accepted Answer

A) True 
 B)False

Question 11

The first chairman of the IASC was

Accepted Answer

A)  Henry Benson 
B)  Howard Ross 
C)  Sidney Davidson 
D)  Robert Anthony 
A)  Henry Benson 
B)  Howard Ross 
C)  Sidney Davidson 
D)  Robert Anthony

Question 12

The founding of the IASC was a direct result of the growth in international trade, mergers and acquisitions, and foreign direct investment that followed World War II.

Accepted Answer

A) True 
 B)False

Question 13

In the creation of a new structure for the IASB, it was determined that half of the Board members would have ties to national standard setters.

Accepted Answer

A) True 
 B)False

Question 14

An exposure draft is the IASB's main vehicle for informing and consulting with the public.

Accepted Answer

A) True 
 B)False

Question 15

Entity A is a medium-sized insurance entity. Entity A is not publicly accountable, and it operates in a country that requires international accounting standards. Which standard should Entity A use to create its financial reports?

Accepted Answer

A)  Full IFRS 
B)  IFRS for SME's 
C)  Neither A or B 
A)  Full IFRS 
B)  IFRS for SME's 
C)  Neither A or B

Question 16

Explain what is IFRS for SMEs, and why there is a need for such standards.

Accepted Answer

The answer of Explain what is IFRS for SMEs, and...

Question 17

What significant announcement did the European Commission make in 2005 regarding the International Accounting Standards?

Accepted Answer

The answer of What significant announcement did the European Commission...

Question 18

The first stage in "due process" is

Accepted Answer

A)  Developing and publishing an exposure draft 
B)  Developing and publishing a discussion paper 
C)  Planning the project 
D)  Setting the agenda 
A)  Developing and publishing an exposure draft 
B)  Developing and publishing a discussion paper 
C)  Planning the project 
D)  Setting the agenda

Question 19

Which of the following was not a significant development that occurred in the 1980's that increased the relevance of international accounting standards?

Accepted Answer

A)  Acceptance of IAS by several major countries 
B)  Acknowledgement of adherence to IAS by several prominent international companies 
C)  IOSCO announced that it would be willing to endorse IAS for use by its regulator members if improvements were made to the standards 
D)  All of the above were critical developments 
A)  Acceptance of IAS by several major countries 
B)  Acknowledgement of adherence to IAS by several prominent international companies 
C)  IOSCO announced that it would be willing to endorse IAS for use by its regulator members if improvements were made to the standards 
D)  All of the above were critical developments

Question 20

In regards to the overall structure of the IASB, which organization acts as a liaison to the public capital markets authorities?

Accepted Answer

A)  The IASB 
B)  The IFRS Advisory Council 
C)  The IFRS Foundation Trustees 
D)  The Monitoring Board 
A)  The IASB 
B)  The IFRS Advisory Council 
C)  The IFRS Foundation Trustees 
D)  The Monitoring Board

Exam 1: Introduction to International Financial Reporting Standards Ifrs

The Memorandum of Understanding released by the IASB and FASB that detailed their commitment to converged standards is known as

The IASB was able to complete its joint projects by the established deadline in May 2011.

Explain the role that the U.S. SEC played in the development of the IASB and the development of international accounting standards.

China was one of the original nine countries that were members of the IASC.

The predecessor to the IASB (International Accounting Standards Board) was the

What are the three main responsibilities of the IASB board of trustees?

In regards to the overall structure of the IASB, which organization oversees the Board and acts as the governing body?

Which of the following was the primary criterion for determining board members with the development of the new standard-setting structure in 2000.

The IASB will consider if a possible standard to be developed can be high quality and increase the possibility of convergence in which stage of due process?

The IASB is required to publish a discussion paper for each potential standard

The first chairman of the IASC was

The founding of the IASC was a direct result of the growth in international trade, mergers and acquisitions, and foreign direct investment that followed World War II.

In the creation of a new structure for the IASB, it was determined that half of the Board members would have ties to national standard setters.

An exposure draft is the IASB's main vehicle for informing and consulting with the public.

Entity A is a medium-sized insurance entity. Entity A is not publicly accountable, and it operates in a country that requires international accounting standards. Which standard should Entity A use to create its financial reports?

Explain what is IFRS for SMEs, and why there is a need for such standards.

What significant announcement did the European Commission make in 2005 regarding the International Accounting Standards?

The first stage in "due process" is

Which of the following was not a significant development that occurred in the 1980's that increased the relevance of international accounting standards?

In regards to the overall structure of the IASB, which organization acts as a liaison to the public capital markets authorities?

Conceptual Framework for Financial Reporting

Fair Value Measurement

Presentation of Financial Statements

Statement of Cash Flows

Accounting Policies, Estimates, and Errors

Events After the Reporting Period

Related Party Disclosures

Earnings Per Share

Operating Segments

Inventories

Financial Instrumentsrecognition and Measurement

Financial Instrumentspresentation

Financial Instrumentsdisclosures

Property, Plant, and Equipment

Intangible Assets

Investment Property

Impairment of Assets

Leases

Revenue From Contracts With Customers

Income Taxes

Employee Benefits

Share-Based Payments

Provisions, Contingent Liabilities, and Contingent Assets

The Effects of Changes in Foreign Exchange Rates

Hyperinflation

Business Combinations

Consolidated Financial Statements

Investments in Associates and Joint Ventures

Joint Arrangements

Disclosure of Interests in Other Entities

Separate Financial Statements

Interim Financial Reporting

Non-Current Assets Held for Sale and Discontinued Operations

Regulatory Deferral Accounts

Borrowing Costs

Accounting and Reporting by Retirement Benefit Plans

Accounting for Government Grants and Disclosure of Government Assistance

Insurance Contracts

Exploration for and Evaluation of Mineral Resources

Agriculture

First-Time Adoption of International Financial Reporting Standard

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