Question 1

Differential reporting is based on:

Accepted Answer

A) small and large proprietary companies having the same requirements to comply with accounting standards in the preparation of financial reports. 
B) the burden of additional reporting for some organisations in situations where there were questionable benefits to report preparers. 
C) the difference between the ability of shareholders in 'small' and those in 'large' companies to request information to satisfy their specific needs. 
D) none of the given answers. 
A) small and large proprietary companies having the same requirements to comply with accounting standards in the preparation of financial reports. 
B) the burden of additional reporting for some organisations in situations where there were questionable benefits to report preparers. 
C) the difference between the ability of shareholders in 'small' and those in 'large' companies to request information to satisfy their specific needs. 
D) none of the given answers.

Question 2

Before the release of IASB accounting standards,or the release of statements of accounting concepts,the contents of the proposed releases are subject to critical review.Detail and discuss this process of critical review.

Accepted Answer

The process of critical review for propo

Question 3

The Statements of Accounting Concepts within the Conceptual Framework are developed by the International Accounting Standards Board.

Accepted Answer

A) True 
 B)False

Question 4

Information is material if its omission,misstatement or non-disclosure has the potential,individually or collectively to:

Accepted Answer

A) affect the discharge of accountability by the governing body of the entity. 
B) be greater than 1% of the total assets of the entity. 
C) influence management to make decisions that will affect users of the financial report. 
D) present the financial report in a 'true and fair' manner. 
A) affect the discharge of accountability by the governing body of the entity. 
B) be greater than 1% of the total assets of the entity. 
C) influence management to make decisions that will affect users of the financial report. 
D) present the financial report in a 'true and fair' manner.

Question 5

The idea that accounting information can be used by people without paying for it,and pass it on,defines accounting information as being:

Accepted Answer

A) worthless. 
B) a free good. 
C) a public good. 
D) a cheap good. 
A) worthless. 
B) a free good. 
C) a public good. 
D) a cheap good.

Question 6

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

Accepted Answer

A) There are no differences between IFRS and US GAAP. 
B) There are only slight differences between IFRS and US GAAP. 
C) There was a decision made by both the IASB and the US Financial Accounting Standards Board (FAS
B)  to pursue an intensification of the convergence program designed to bring a number of short-term fixes between the two sets of accounting standards. 
D) There are only slight differences between IFRS and US GAAP and there was a decision made by both the IASB and the US Financial Accounting Standards Board (FAS
B)  to pursue an intensification of the convergence program designed to bring a number of short-term fixes between the two sets of accounting standards. 
A) There are no differences between IFRS and US GAAP. 
B) There are only slight differences between IFRS and US GAAP. 
C) There was a decision made by both the IASB and the US Financial Accounting Standards Board (FAS
B)  to pursue an intensification of the convergence program designed to bring a number of short-term fixes between the two sets of accounting standards. 
D) There are only slight differences between IFRS and US GAAP and there was a decision made by both the IASB and the US Financial Accounting Standards Board (FAS
B)  to pursue an intensification of the convergence program designed to bring a number of short-term fixes between the two sets of accounting standards.

Question 7

The objective of the International Financial Reporting Interpretations Committee (IFRIC)is to:

Accepted Answer

A) achieve consistent interpretations of IFRS by IFRS-adopters internationally. 
B) address accounting issues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance, with a view to reaching consensus on the appropriate accounting treatment. 
C) address issues of reasonably widespread importance, and not issues of concern only to a small set of enterprises. 
D) All the given answers are correct. 
A) achieve consistent interpretations of IFRS by IFRS-adopters internationally. 
B) address accounting issues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance, with a view to reaching consensus on the appropriate accounting treatment. 
C) address issues of reasonably widespread importance, and not issues of concern only to a small set of enterprises. 
D) All the given answers are correct.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

What are two key ways management accounting is different from financial accounting?

Accepted Answer

A) Management accounting provides special-purpose information to people external to the firm and it is highly regulated. 
B) Management accounting provides information for the day-to-day running of an organisation and it is governed by the requirements of FSA. 
C) Management accounting is focused on providing information to shareholders who wish to have input into the management of the organisation and it is regulated by generally accepted accounting principles. 
D) Management accounting focuses on providing information for internal users and it is largely unregulated. 
A) Management accounting provides special-purpose information to people external to the firm and it is highly regulated. 
B) Management accounting provides information for the day-to-day running of an organisation and it is governed by the requirements of FSA. 
C) Management accounting is focused on providing information to shareholders who wish to have input into the management of the organisation and it is regulated by generally accepted accounting principles. 
D) Management accounting focuses on providing information for internal users and it is largely unregulated.

Question 10

In accordance with IAS 1 Presentation of Financial Statements,a financial report comprises:

Accepted Answer

A) a statement of financial position, a statement of comprehensive income and a statement of cash flows 
B) a statement of financial position, a statement of comprehensive income, a statement of changes in equity and a statement of cash flows 
C) a statement of financial position, a statement of comprehensive income, a statement of changes in equity, a statement of cash flows and notes to the financial statements 
D) a statement of financial position, a statement of comprehensive income, a statement of cash flows and notes to the financial statements 
A) a statement of financial position, a statement of comprehensive income and a statement of cash flows 
B) a statement of financial position, a statement of comprehensive income, a statement of changes in equity and a statement of cash flows 
C) a statement of financial position, a statement of comprehensive income, a statement of changes in equity, a statement of cash flows and notes to the financial statements 
D) a statement of financial position, a statement of comprehensive income, a statement of cash flows and notes to the financial statements

Question 11

The IASB's responsibilities include:

Accepted Answer

A) developing accounting standards that comply with company legislation. 
B) setting ethical guidelines for the accounting profession. 
C) formulating standards to be used by the entities in the public sector. 
D) developing accounting standards that are consistent with the Conceptual Framework . 
A) developing accounting standards that comply with company legislation. 
B) setting ethical guidelines for the accounting profession. 
C) formulating standards to be used by the entities in the public sector. 
D) developing accounting standards that are consistent with the Conceptual Framework .

Question 12

Discuss the purpose of audit reports in financial reporting.

Accepted Answer

The purpose of audit reports in financia

Question 13

Some of the perceived barriers to the harmonisation process (for the harmonisation of accounting standards globally)include:

Accepted Answer

A) different business environments. 
B) different legal systems. 
C) different cultures. 
D) all of the given answers. 
A) different business environments. 
B) different legal systems. 
C) different cultures. 
D) all of the given answers.

Question 14

Which of the following bodies was set up to enhance the public accountability of the IFRS Foundation whilst not impairing the independence of the standard-setting process?

Accepted Answer

A) the IFRS Advisory Council 
B) the IFRS Foundation Support Operations 
C) the IASB 
D) the Monitoring Board of Public and Capital Market Authorities 
A) the IFRS Advisory Council 
B) the IFRS Foundation Support Operations 
C) the IASB 
D) the Monitoring Board of Public and Capital Market Authorities

Question 15

A criticism of the way the membership of the Financial Reporting Council has been structured is that:

Accepted Answer

A) Groups that are primarily interested in the financial performance of entities are represented while lobby groups with other interests are not. 
B) It has increased the breadth of representation too widely. 
C) The Treasurer does not have sufficient input into the selection process. 
D) It is dominated by professional accountants. 
A) Groups that are primarily interested in the financial performance of entities are represented while lobby groups with other interests are not. 
B) It has increased the breadth of representation too widely. 
C) The Treasurer does not have sufficient input into the selection process. 
D) It is dominated by professional accountants.

Question 16

Arguments against the regulation of accounting information include:

Accepted Answer

A) Mandated disclosures are cheap to provide and by their nature will devalue the worth of the information being provided. 
B) By making so many choices of accounting methods available under the standards, the efficiency with which the information is provided will be enhanced. 
C) Companies will be motivated to disclose good news but not disclose bad news if they are not forced to make certain mandated disclosures (the 'lemons' argument). 
D) Managers of the organisation are in the best place to determine what information should be produced to increase the confidence of external stakeholders. 
A) Mandated disclosures are cheap to provide and by their nature will devalue the worth of the information being provided. 
B) By making so many choices of accounting methods available under the standards, the efficiency with which the information is provided will be enhanced. 
C) Companies will be motivated to disclose good news but not disclose bad news if they are not forced to make certain mandated disclosures (the 'lemons' argument). 
D) Managers of the organisation are in the best place to determine what information should be produced to increase the confidence of external stakeholders.

Question 17

The Financial Services Authority in the UK (FSA)has the responsibility,among other things,to monitor and regulate various investment products and superannuation in the UK.

Accepted Answer

A) True 
 B)False

Question 18

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 general-purpose financial statements.

Accepted Answer

A) True 
 B)False

Exam 1: An Overview of the International External Reporting Environment

Differential reporting is based on:

Before the release of IASB accounting standards,or the release of statements of accounting concepts,the contents of the proposed releases are subject to critical review.Detail and discuss this process of critical review.

The Statements of Accounting Concepts within the Conceptual Framework are developed by the International Accounting Standards Board.

Information is material if its omission,misstatement or non-disclosure has the potential,individually or collectively to:

The idea that accounting information can be used by people without paying for it,and pass it on,defines accounting information as being:

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

The objective of the International Financial Reporting Interpretations Committee (IFRIC)is to:

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

What are two key ways management accounting is different from financial accounting?

In accordance with IAS 1 Presentation of Financial Statements,a financial report comprises:

The IASB's responsibilities include:

Discuss the purpose of audit reports in financial reporting.

Some of the perceived barriers to the harmonisation process (for the harmonisation of accounting standards globally)include:

Which of the following bodies was set up to enhance the public accountability of the IFRS Foundation whilst not impairing the independence of the standard-setting process?

A criticism of the way the membership of the Financial Reporting Council has been structured is that:

Arguments against the regulation of accounting information include:

The Financial Services Authority in the UK (FSA)has the responsibility,among other things,to monitor and regulate various investment products and superannuation in the UK.

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 general-purpose financial statements.

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

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