Exam 1: An Overview of the Australian External Reporting Environment

The Financial Reporting Panel (FRP)established under the auspices of the Australian Securities and Investments Commission (ASIC)intends to provide:

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 Corporations Act requires which of the following to be included in a Directors' Declaration? 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.

Under the Corporations Act,which of the following types of companies must comply with Australian accounting standards? I.Disclosing entities II.Publicly listed companies III.Large proprietary companies IV.Small proprietary companies

The AASB's responsibilities include:

The Australian Accounting Standards Board reports to which body?

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

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

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:

The AASB Standards 1-99 Series includes those standards:

The Corporations Act requires which of the following to be included in a Directors' Declaration?

Pursuant to Corporate Law Economic Reform Program (CLERP)issued in October 2003,which of the following is/are required to provide a written declaration to the board of directors that the annual financial statements are in accordance with the Corporations Act and Australian Accounting Standards and that the financial statements present a true and fair view of the entity's financial position and performance?

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

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 a general-purpose report:

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:

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

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

In accordance with Corporations Act,which of the following companies will be required to conform to the Australian Accounting Standards in the preparation of their financial reports? Proprietary Company with revenues of $12 million,total assets of $4 million and number of employees totalling 80. Proprietary Company with revenues of $6 million,total assets of $4 million and number of employees totalling 60. Company listed on the stock exchange. Company that issued a public debt Reporting entities

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

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