Question 1

AASB are initials that stand for:

Accepted Answer

A)  Australian Accounting Standards Board 
B)  Accounting & Auditing Standards Bureau 
C)  Australian Accounting Standards Bureau 
D)  Accounting & Auditing Supervision Board 
A)  Australian Accounting Standards Board 
B)  Accounting & Auditing Standards Bureau 
C)  Australian Accounting Standards Bureau 
D)  Accounting & Auditing Supervision Board

Question 2

A recent noteworthy development in relation to Australian Stock Exchange (ASX)-required disclosures is the establishment of the ASX Corporate Governance Council,and the issue of Principles of Good Corporate Governance and Best Practice Recommendations.In relation to these principles:

Accepted Answer

A)  All companies governed by the Corporations Act 2001 must abide by these principles and recommendations. 
B)  The Australian Accounting Standards Board (AAS
B)  has incorporated the principles and recommendations into the Accounting Framework. 
C)  All ASX-listed companies are compelled by law to comply in entirety with these principles and recommendations. 
D)  All ASX-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 Corporations Act 2001 must abide by these principles and recommendations. 
B)  The Australian Accounting Standards Board (AAS
B)  has incorporated the principles and recommendations into the Accounting Framework. 
C)  All ASX-listed companies are compelled by law to comply in entirety with these principles and recommendations. 
D)  All ASX-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.

Question 3

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?

Accepted Answer

A)  Directors may elect not to comply with the standard. 
B)  Directors may exercise the 'true and fair view override'. 
C)  Directors may disclose the standard in question, the nature of conflict and adjustments made. 
D)  All of the given answers are correct. 
A)  Directors may elect not to comply with the standard. 
B)  Directors may exercise the 'true and fair view override'. 
C)  Directors may disclose the standard in question, the nature of conflict and adjustments made. 
D)  All of the given answers are correct.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

Accepted Answer

A)  agreed to maintain the status quo and retain international and US accounting standards in the form that they currently exist. 
B)  identified a number of options to ensure complete consistency between international and US accounting standards by 2010. 
C)  identified an intention to implement actions to identify and remove major accounting differences in specific areas by 2008. 
D)  identified an agreement that international standards will be changed to accord with US standards, wherever there were key differences, by 2008. 
A)  agreed to maintain the status quo and retain international and US accounting standards in the form that they currently exist. 
B)  identified a number of options to ensure complete consistency between international and US accounting standards by 2010. 
C)  identified an intention to implement actions to identify and remove major accounting differences in specific areas by 2008. 
D)  identified an agreement that international standards will be changed to accord with US standards, wherever there were key differences, by 2008.

Question 7

Before the release of AASB 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 8

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

Accepted Answer

A)  costs of educating accountants to adopt a new set of standards. 
B)  costs associated with changing data collection systems. 
C)  costs associated with changing data reporting systems. 
D)  all of the given answers. 
A)  costs of educating accountants to adopt a new set of standards. 
B)  costs associated with changing data collection systems. 
C)  costs associated with changing data reporting systems. 
D)  all of the given answers.

Question 9

To determine whether or not information is material,paragraph 9 of AASB 1031 indicates that it 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 10

The main benefits of international harmonisation are said to include:

Accepted Answer

A)  increasing the comparability of financial reports prepared in different countries so that capital ultimately flows to entities that can use it the most productively. 
B)  reducing the financial reporting costs for Australian multinational companies. 
C)  removing barriers to international capital flows by reducing differences in financial reporting requirements and so increasing understanding by foreign investors of Australian reports. 
D)  all of the given answers 
A)  increasing the comparability of financial reports prepared in different countries so that capital ultimately flows to entities that can use it the most productively. 
B)  reducing the financial reporting costs for Australian multinational companies. 
C)  removing barriers to international capital flows by reducing differences in financial reporting requirements and so increasing understanding by foreign investors of Australian reports. 
D)  all of the given answers

Exam 1: An Overview of the Australian External Reporting Environment

AASB are initials that stand for:

A recent noteworthy development in relation to Australian Stock Exchange (ASX)-required disclosures is the establishment of the ASX Corporate Governance Council,and the issue of Principles of Good Corporate Governance and Best Practice Recommendations.In relation to these principles:

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?

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

Differential reporting is based on:

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

Before the release of AASB 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.

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

To determine whether or not information is material,paragraph 9 of AASB 1031 indicates that it is material if its omission,misstatement or non-disclosure has the potential,individually or collectively to:

The main benefits of international harmonisation are said to include:

The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Theories of 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

Accounting for Heritage Assets and Biological Assets

An Overview of Accounting for Liabilities

Accounting for Leases

Accounting for Employee Benefits

Share Capital and Reserves

Accounting for Financial Instruments

Revenue Recognition Issues

The Statement of Comprehensive Income and Statement of Changes in Equity

Accounting for Share-Based Payments

Accounting for Income Taxes

The Statement of Cash Flows

Accounting for the Extractive Industries

Accounting for General Insurance Contracts

Accounting for Superannuation Plans

Events Occurring After the End of the Reporting Period

Segment Reporting

Related Party Disclosures

Earnings Per Share

Accounting for Group Structures

Further Consolidation Issues I: Accounting for Intragroup Transactions

Further Consolidation Issues II: Accounting for Non-Controlling Interests

Further Consolidation Issues IV: Accounting for Changes in the Degree of Ownership of a Subsidiary

Accounting for Equity Investments,including Investments in Associates and Joint Arrangements

Accounting for Foreign Currency Transactions

Translating the Financial Statements of Foreign Operations

Accounting for Corporate Social Responsibility

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