Question 1

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

Accepted Answer

A)  The Auditors. 
B)  Management. 
C)  The Auditors and Management jointly. 
D)  The Auditors and the Board of Directors jointly. 
E)  Management and Representatives from ASIC. 
A)  The Auditors. 
B)  Management. 
C)  The Auditors and Management jointly. 
D)  The Auditors and the Board of Directors jointly. 
E)  Management and Representatives from ASIC.

Question 2

A company may be exempted from the requirements of s 296 of The Corporations Act if:

Accepted Answer

A)  It is a small proprietary company within the definition of the Act. 
B)  A special meeting of 75 per cent of the shareholders convened under s 293 agrees to the preparation of financial reports that do not comply with those accounting standards. 
C)  The report is prepared in response to a shareholder direction under s 293 and the direction specifies that the report does not have to comply with those accounting standards. 
D)  It is a small proprietary company within the definition of the Act and the report is prepared in response to a shareholder direction under s 293 and the direction specifies that the report does not have to comply with those accounting standards. 
E)  None of the given answers. 
A)  It is a small proprietary company within the definition of the Act. 
B)  A special meeting of 75 per cent of the shareholders convened under s 293 agrees to the preparation of financial reports that do not comply with those accounting standards. 
C)  The report is prepared in response to a shareholder direction under s 293 and the direction specifies that the report does not have to comply with those accounting standards. 
D)  It is a small proprietary company within the definition of the Act and the report is prepared in response to a shareholder direction under s 293 and the direction specifies that the report does not have to comply with those accounting standards. 
E)  None of the given answers.

Question 3

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. 
E)  identified a goal that all international and US accounting standards be totally harmonised 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. 
E)  identified a goal that all international and US accounting standards be totally harmonised by 2008.

Question 4

The Australian Accounting Standards Board (AASB)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 5

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

Accepted Answer

A)  The Chairman of the IASB. 
B)  A simple majority of the IASB's fourteen members. 
C)  Nine of the IASB's fourteen members. 
D)  Twelve of the IASB's fourteen members. 
E)  All of the IASB's fourteen members. 
A)  The Chairman of the IASB. 
B)  A simple majority of the IASB's fourteen members. 
C)  Nine of the IASB's fourteen members. 
D)  Twelve of the IASB's fourteen members. 
E)  All of the IASB's fourteen members.

Question 6

The only body with the power to veto a standard recommended by the AASB is:

Accepted Answer

A)  The Financial Reporting Council. 
B)  The Commonwealth Parliament. 
C)  The Australian Accounting Standards Review Board. 
D)  The Urgent Issues Group. 
E)  None of the given answers. 
A)  The Financial Reporting Council. 
B)  The Commonwealth Parliament. 
C)  The Australian Accounting Standards Review Board. 
D)  The Urgent Issues Group. 
E)  None of the given answers.

Question 7

There has been a trend by governments and government departments towards adopting specialised public sector accounting techniques:

Accepted Answer

A) True 
 B)False

Question 8

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)  That 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. 
E)  None of the given answers. 
A)  Mandated disclosures are cheap to provide and by their nature will devalue the worth of the information being provided. 
B)  That 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. 
E)  None of the given answers.

Question 9

Until recently standards issued by the IASB (formerly IASC)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 template when another country was developing its own standards. 
C)  Not that important as they were only designed for European economies. 
D)  Frequently adopted directly by developing countries. 
E)  Developed by the 142 members who represented professional accounting bodies from around the world. 
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 template when another country was developing its own standards. 
C)  Not that important as they were only designed for European economies. 
D)  Frequently adopted directly by developing countries. 
E)  Developed by the 142 members who represented professional accounting bodies from around the world.

Question 10

In adopting International Financial Reporting Standards (IFRSs),the Australian Accounting Standards Board (AASB)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 AASBs. 
E)  None of the given answers. 
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 AASBs. 
E)  None of the given answers.

Exam 1: An Overview of the Australian External Reporting Environment

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

A company may be exempted from the requirements of s 296 of The Corporations Act if:

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

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

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

The only body with the power to veto a standard recommended by the AASB is:

There has been a trend by governments and government departments towards adopting specialised public sector accounting techniques:

Arguments against the regulation of accounting information include:

Until recently standards issued by the IASB (formerly IASC)were:

In adopting International Financial Reporting Standards (IFRSs),the Australian Accounting Standards Board (AASB)has:

The Conceptual Framework of Accounting and Its Relevance to Financ

Theories of Financial Accounting

An Overview of Accounting for Assets

Depreciation of Property, plant and Equipment

Revaluation 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 Lease

Set-Off and Extinguishment of Debt

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 E

Accounting for Share-Based Payments

Accounting for Income Taxes

Cash-Flow Statements

Accounting for the Extractive Industries

Accounting for General Insurance Contracts

Accounting for Superannuation Plans

Events Occurring After Balance Sheet Date

Segment Reporting

Related-Party Disclosures

Earnings Per Share

Accounting for Group Structures

Further Consolidation Issues I: Accounting for Intragroup Transact

Further Consolidation Issues II: Accounting for Minority Interests

Further Consolidation Issues III: Accounting for Indirect Ownershi

Further Consolidation Issues Iv: Accounting for Changes in the Deg

Accounting for Equity Investments

Accounting for Equity Investments

Accounting for Foreign Currency Transactions

Translation of the Accounts of Foreign Operations

Accounting for Corporate Social Responsibility

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