Question 1

In adopting International Financial Reporting Standards (IFRSs),the UK Accounting Standards Board (ASB)has:

Accepted Answer

A) embraced the IFRSs without change. 
B) been disbanded as it is no longer required. 
C) used the IFRSs only as a foundation for its own set of standards and has identified where these own standards do not comply with IFRSs. 
D) issued its own standards and 're-badged' them as FRSs. 
A) embraced the IFRSs without change. 
B) been disbanded as it is no longer required. 
C) used the IFRSs only as a foundation for its own set of standards and has identified where these own standards do not comply with IFRSs. 
D) issued its own standards and 're-badged' them as FRSs. D

Question 2

The UK Corporate Governance Code was issued in 2010 In relation to these principles:

Accepted Answer

A) All companies governed by the UK Companies Act 2006 must abide by these principles and recommendations. 
B) The International Accounting Standards Board (IAS
B)  has incorporated the principles and recommendations into the Conceptual Framework. 
C) All LSE-listed companies are compelled by law to comply in entirety with these principles and recommendations. 
D) All LSE-listed companies must follow these principles and recommendations, and where they have not, they must identify the fact that they have not and give reasons for not following them. 
A) All companies governed by the UK Companies Act 2006 must abide by these principles and recommendations. 
B) The International Accounting Standards Board (IAS
B)  has incorporated the principles and recommendations into the Conceptual Framework. 
C) All LSE-listed companies are compelled by law to comply in entirety with these principles and recommendations. 
D) All LSE-listed companies must follow these principles and recommendations, and where they have not, they must identify the fact that they have not and give reasons for not following them. D

Question 3

The International Accounting Standards Board reports to which body?

Accepted Answer

A) the Urgent Issues Task Force Group 
B) the Financial Accounting Standards Board 
C) the Financial Reporting Council 
D) Monitoring Board of Public and Capital Market Authorities 
A) the Urgent Issues Task Force Group 
B) the Financial Accounting Standards Board 
C) the Financial Reporting Council 
D) Monitoring Board of Public and Capital Market Authorities C

Question 4

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

Accepted Answer

A) An advisory committee may be established to give advice on the project; this may be followed by the development and publication of Discussion Documents.After receiving public feedback, an Exposure Draft may then be issued for further comment.A final IFRS is then issued based on previous feedback along with Basis for Conclusion. 
B) Discussion Documents are developed and published for public comment, then an advisory committee must be established to give advice on the project.After receiving public feedback, an Exposure Draft may then be issued for further comment.A final IFRS is then issued based on previous feedback along with Basis for Conclusion. 
C) An advisory committee may be established to give advice on the project and develop an Exposure Draft, which will be followed by the development and publication of Discussion Documents.After receiving public feedback, a final IFRS is then issued along with Basis for Conclusion. 
D) An advisory committee must be established to give advice on the project; this will be followed by the development and publication of Discussion Documents.After receiving public feedback, an Exposure Draft is required to be issued for further comment.A final IFRS is then issued based on previous feedback along with Basis for Conclusion. 
A) An advisory committee may be established to give advice on the project; this may be followed by the development and publication of Discussion Documents.After receiving public feedback, an Exposure Draft may then be issued for further comment.A final IFRS is then issued based on previous feedback along with Basis for Conclusion. 
B) Discussion Documents are developed and published for public comment, then an advisory committee must be established to give advice on the project.After receiving public feedback, an Exposure Draft may then be issued for further comment.A final IFRS is then issued based on previous feedback along with Basis for Conclusion. 
C) An advisory committee may be established to give advice on the project and develop an Exposure Draft, which will be followed by the development and publication of Discussion Documents.After receiving public feedback, a final IFRS is then issued along with Basis for Conclusion. 
D) An advisory committee must be established to give advice on the project; this will be followed by the development and publication of Discussion Documents.After receiving public feedback, an Exposure Draft is required to be issued for further comment.A final IFRS is then issued based on previous feedback along with Basis for Conclusion.

Question 5

The main role of the International Financial Reporting Interpretations Committee (IFRIC)is to review accounting issues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance.

Accepted Answer

A) True 
 B)False

Question 6

Audits are typically required for:

Accepted Answer

A) all public companies, large proprietary companies and a limited number of small proprietary companies only. 
B) Government departments, statutory authorities, government companies and business undertakings and municipalities. 
C)  all public companies, large proprietary companies and a limited number of small proprietary companies only AND
Government departments, statutory authorities, government companies and business undertakings and municipalities. 
D) none of the given answers. 
A) all public companies, large proprietary companies and a limited number of small proprietary companies only. 
B) Government departments, statutory authorities, government companies and business undertakings and municipalities. 
C)  all public companies, large proprietary companies and a limited number of small proprietary companies only AND
Government departments, statutory authorities, government companies and business undertakings and municipalities. 
D) none of the given answers.

Question 7

Until recently,accounting standards issued by the IASB were:

Accepted Answer

A) the most well developed set of accounting standards and used widely around the world. 
B) deemed to be 'best practice' and always used as a guide when another country was developing its own standards. 
C) not that important as they were only designed for western economies. 
D) frequently adopted directly by developing countries that did not have their own standard-setting processes. 
A) the most well developed set of accounting standards and used widely around the world. 
B) deemed to be 'best practice' and always used as a guide when another country was developing its own standards. 
C) not that important as they were only designed for western economies. 
D) frequently adopted directly by developing countries that did not have their own standard-setting processes.

Question 8

Directors could elect not to comply with an accounting standard on the grounds that applying the particular accounting standard would cause the financial statements not to present a 'true and fair view'.

Accepted Answer

A) True 
 B)False

Question 9

In Europe International Financial Reporting Standards are adopted after being agreed by:

Accepted Answer

A) the Financial Reporting Council. 
B) the European Union. 
C) the Accounting Standards Review Board. 
D) the Urgent Issues Task Force Group. 
A) the Financial Reporting Council. 
B) the European Union. 
C) the Accounting Standards Review Board. 
D) the Urgent Issues Task Force Group.

Question 10

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

Accepted Answer

A) the chairman of the IASB 
B) a simple majority of the IASB's 14 members 
C) nine of the IASB's 14 members 
D) 12 of the IASB's 14 members 
A) the chairman of the IASB 
B) a simple majority of the IASB's 14 members 
C) nine of the IASB's 14 members 
D) 12 of the IASB's 14 members

Question 11

One of the main benefits of international harmonisation is the increase in the comparability of financial reports prepared in different countries yet differences persist that could have significant implications for profit comparisons.Discuss.

Accepted Answer

In 2004 a European-based multinational r

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) Larger companies have greater political and economic importance and this increases the demand for financial information about the entity by external users. 
B) Larger companies can afford to pay for complex accounting systems and the experts necessary to design and maintain them. 
C) The Conceptual Framework and accounting standards are designed for larger enterprises. 
D) The Security Exchange Regulators should only be responsible for large enterprises. 
A) Larger companies have greater political and economic importance and this increases the demand for financial information about the entity by external users. 
B) Larger companies can afford to pay for complex accounting systems and the experts necessary to design and maintain them. 
C) The Conceptual Framework and accounting standards are designed for larger enterprises. 
D) The Security Exchange Regulators should only be responsible for large enterprises.

Question 14

There has been a trend by governments and government departments towards adopting specialised public-sector related standards.

Accepted Answer

A) True 
 B)False

Question 15

Legislation is very specific about what must,and must not,be included in the Directors' Report that is attached to a company's financial statements.

Accepted Answer

A) True 
 B)False

Question 16

Which body reviews,on a timely basis within the context of existing International Accounting Standard (IASB)and the IASB Conceptual Framework,accounting issues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance?

Accepted Answer

A) International Accounting Standards Board (IAS
B) . 
B) International Financial Reporting Interpretations Committee (IFRI
C) . 
C) International Interpretations and Issues Group (IIIG). 
D) Urgent Issues Group (UIG). 
A) International Accounting Standards Board (IAS
B) . 
B) International Financial Reporting Interpretations Committee (IFRI
C) . 
C) International Interpretations and Issues Group (IIIG). 
D) Urgent Issues Group (UIG).

Question 17

Disclosing entities generally,are entities that have:
 securities (including debentures)quoted on a recognized securities exchange; issued securities (including debentures)pursuant to a prospectus or a takeover scheme; and borrowing corporations.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statement was not identified as a benefit of international harmonisation?

Accepted Answer

A) It was likely to increase the comparability of financial reports prepared in different countries. 
B) It was likely to improve the quality of financial reporting in Europe to best international practice. 
C) It was likely to reduce the reporting costs for Europe's not-for-profit entities and local governments. 
D) It was likely to allow more meaningful comparisons of the financial performance and financial position of foreign public sector reporting entities. 
A) It was likely to increase the comparability of financial reports prepared in different countries. 
B) It was likely to improve the quality of financial reporting in Europe to best international practice. 
C) It was likely to reduce the reporting costs for Europe's not-for-profit entities and local governments. 
D) It was likely to allow more meaningful comparisons of the financial performance and financial position of foreign public sector reporting entities.

Question 19

Financial accounting can be considered a process involving the collection and processing of financial information to assist the decision-making needs of parties internal to an organisation.

Accepted Answer

A) True 
 B)False

Question 20

The main role of the Financial Reporting Council (FRC)is to develop a new conceptual framework for financial reporting.

Accepted Answer

A) True 
 B)False

Exam 1: An Overview of the International External Reporting Environment

In adopting International Financial Reporting Standards (IFRSs),the UK Accounting Standards Board (ASB)has:

The UK Corporate Governance Code was issued in 2010 In relation to these principles:

The International Accounting Standards Board reports to which body?

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

The main role of the International Financial Reporting Interpretations Committee (IFRIC)is to review accounting issues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance.

Audits are typically required for:

Until recently,accounting standards issued by the IASB were:

Directors could elect not to comply with an accounting standard on the grounds that applying the particular accounting standard would cause the financial statements not to present a 'true and fair view'.

In Europe International Financial Reporting Standards are adopted after being agreed by:

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

One of the main benefits of international harmonisation is the increase in the comparability of financial reports prepared in different countries yet differences persist that could have significant implications for profit comparisons.Discuss.

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:

There has been a trend by governments and government departments towards adopting specialised public-sector related standards.

Legislation is very specific about what must,and must not,be included in the Directors' Report that is attached to a company's financial statements.

Which body reviews,on a timely basis within the context of existing International Accounting Standard (IASB)and the IASB Conceptual Framework,accounting issues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance?

Disclosing entities generally,are entities that have: securities (including debentures)quoted on a recognized securities exchange; issued securities (including debentures)pursuant to a prospectus or a takeover scheme; and borrowing corporations.

Which of the following statement was not identified as a benefit of international harmonisation?

Financial accounting can be considered a process involving the collection and processing of financial information to assist the decision-making needs of parties internal to an organisation.

The main role of the Financial Reporting Council (FRC)is to develop a new conceptual framework for financial reporting.

The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Theories of Financial Accounting

An Overview of Accounting for Assets

Depreciation of Property, Plant and Equipment

Revaluations and Impairment Testing of Non-Current Assets

Inventory

Accounting for Intangibles

An Overview of Accounting for Liabilities

Accounting for Leases

Share Capital, Reserves and Share Options Employee Bonus Schemes

Accounting for Financial Instruments

Revenue Recognition Issues

The Statement of Comprehensive Income and Statement of Changes in Equity

Accounting for Income Taxes

The Statement of Cash Flows

Events Occurring After the Reporting Date

Related-Party Disclosures

Earnings Per Share

Further Consolidation Issues I: Accounting for Intragroup Transactions

Further Consolidation Issues II: Accounting for Non-Controlling Interests

Further Consolidation Issues III: Accounting for Indirect Ownership Interest

Accounting for Foreign Currency Transactions

Translating the Financial Statements of Foreign Operations

Accounting for Corporate Social Responsibility

Filters