Exam 1: An Overview of the International External Reporting Environment

The impact of adopting International Financial Reporting Standards (IFRSs)in Europe/ UK has led to a number of significant changes in the accounting for several items.Outline and discuss five of these significant changes.

The main role of the IFRS Interpretations committee is to resolve disputes between FSA and companies concerning accounting treatments in their financial reports.

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

The main benefits of international harmonisation are said to include:

The process of issuing accounting standards by the IASB is:

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

The Companies Act requires which of the following to be included in a Directors' Responsibilities statement? 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.

Those in favour of regulating the provision of financial accounting argue that accounting is a public good and that without regulation,there is a problem of 'free-riders'.Explain what is meant by the notions of public good and free-riders and why proponents of regulation use them to support their views.

Enumerate the sources of accounting regulation in the UK and briefly discuss how each may affect corporate financial reporting.

The role of the Financial Reporting Council is to provide broad oversight of the process for setting International standards,including the authority to direct the IASB to develop,amend or revoke a particular standard.

Which of the following statements should be included in a Directors' Responsibility Statement/ Declaration?

Accounting cannot be considered to be 'culture free' because the value systems of accountants may be expected to be related to and derived from the values of the society with special reference to work related values and,as such,impacts on accounting systems.

In the absence of regulation,for auditing to be an effective strategy for reducing the costs of attracting funds,the auditor must:

A joint Memorandum of Understanding between the International Accounting Standards Board (IASB)and US Financial Accounting Standards Board (FASB),published in 2006:

Corporate governance is the framework of rules,relationships,systems and processes within and by which authority is exercised and controlled in corporations.

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

IASB are initials that stand for:

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?

Differential reporting for small entities and large entities will result in the following:

A general purpose financial statements means: