Question 1

Give an overview of the present institutional arrangements for standard setting in Australia.

Accepted Answer

Not Answer

Question 2

It is incorrect that under the Corporations Act 2001:

Accepted Answer

A)  the accounting standards are deemed to be part of the Corporations Act 
B)  financial reports must comply with the accounting standards 
C)  the accounting standards need not be complied with if, in the opinion of the board of directors, this would not result in a true and fair view 
D)  if the financial statements and notes prepared in compliance with accounting standards would not give a true and fair view, then additional information necessary to give a true and fair view must be included in the notes to the statements 
A)  the accounting standards are deemed to be part of the Corporations Act 
B)  financial reports must comply with the accounting standards 
C)  the accounting standards need not be complied with if, in the opinion of the board of directors, this would not result in a true and fair view 
D)  if the financial statements and notes prepared in compliance with accounting standards would not give a true and fair view, then additional information necessary to give a true and fair view must be included in the notes to the statements C

Question 3

It is not part of the role of the Financial Reporting Council:

Accepted Answer

A)  to approve and monitor the AASB's priorities 
B)  to review the content of existing accounting standards 
C)  to promote a greater role for international accounting standards in Australia 
D)  to appoint members of the AASB 
A)  to approve and monitor the AASB's priorities 
B)  to review the content of existing accounting standards 
C)  to promote a greater role for international accounting standards in Australia 
D)  to appoint members of the AASB B

Question 4

Under section 296 of the Corporations Act 2001,directors of companies that fail to comply with AASB accounting standards may be prosecuted by:

Accepted Answer

A)  ASIC 
B)  AASB 
C)  ASX 
D)  FRP 
A)  ASIC 
B)  AASB 
C)  ASX 
D)  FRP

Question 5

The body that oversees the operation of the Auditing and Assurance Standards Board is:

Accepted Answer

A)  The Financial Reporting Council (FR
C)  
B)  ASIC 
C)  AASB 
D)  ASX 
A)  The Financial Reporting Council (FR
C)  
B)  ASIC 
C)  AASB 
D)  ASX

Question 6

Explain how accounting standards are currently enforced in Australia.

Accepted Answer

The answer of Explain how accounting standards are currently enforced...

Question 7

The most correct description of the stages in the development of AASB accounting standards is:

Accepted Answer

A)  invitation to comment, exposure draft, discussion paper, approval of final standard 
B)  discussion paper, public comment, exposure draft, approval of final standard 
C)  discussion paper, exposure draft, approval of final standard, review 
D)  discussion paper, exposure draft, public comment, approval of final standard 
A)  invitation to comment, exposure draft, discussion paper, approval of final standard 
B)  discussion paper, public comment, exposure draft, approval of final standard 
C)  discussion paper, exposure draft, approval of final standard, review 
D)  discussion paper, exposure draft, public comment, approval of final standard

Question 8

The ASX listing rules:

Accepted Answer

A)  apply to all companies and other entities reporting under the Corporations Act 
B)  apply only to public sector entities 
C)  are mandatory for public sector entities 
D)  apply to publicly listed companies only 
A)  apply to all companies and other entities reporting under the Corporations Act 
B)  apply only to public sector entities 
C)  are mandatory for public sector entities 
D)  apply to publicly listed companies only

Question 9

Which of the following is/are true concerning the issue of accounting standards in Australia after internationalisation?

Accepted Answer

A)  The AASB adds to proposed international standards material detailing their scope and applicability in Australia 
B)  The AASB adds material to broaden the content of international standards to cover the not-for-profit sector 
C)  After issuing an exposure draft for comment and considering the response, the AASB issues an Australian standard equivalent to the IASB standard 
D)  All of the statements are true 
A)  The AASB adds to proposed international standards material detailing their scope and applicability in Australia 
B)  The AASB adds material to broaden the content of international standards to cover the not-for-profit sector 
C)  After issuing an exposure draft for comment and considering the response, the AASB issues an Australian standard equivalent to the IASB standard 
D)  All of the statements are true

Question 10

Explain and discuss the procedures currently operating in Australia for dealing with issues involving the development of AASB Interpretations.

Accepted Answer

The answer of Explain and discuss the procedures currently operating...

Question 11

Discuss the role of the accounting bodies in the regulation of Australian accounting practice.

Accepted Answer

The answer of Discuss the role of the accounting bodies...

Question 12

Interpretation Advisory Panels make recommendations on particular issues to:

Accepted Answer

A)  AASB 
B)  UIG 
C)  ASIC 
D)  ASX 
A)  AASB 
B)  UIG 
C)  ASIC 
D)  ASX

Question 13

Compliance with accounting standards by reporting entities in the public sector is required by:

Accepted Answer

A)  ASIC 
B)  specific acts applying to the public sector 
C)  FRC 
D)  the Corporations Act 
A)  ASIC 
B)  specific acts applying to the public sector 
C)  FRC 
D)  the Corporations Act

Question 14

Additional disclosure requirements by the ASX for stock exchange listed companies are all of the following,except:

Accepted Answer

A)  reporting of performance indicators such as return on shareholders' equity 
B)  a statement of ethical guidelines for employees and management 
C)  a requirement for the top 300 companies to have an audit committee 
D)  none of the above, i.e., all are additional requirements for ASX listed companies 
A)  reporting of performance indicators such as return on shareholders' equity 
B)  a statement of ethical guidelines for employees and management 
C)  a requirement for the top 300 companies to have an audit committee 
D)  none of the above, i.e., all are additional requirements for ASX listed companies

Question 15

The AASB has responsibility for making accounting standards applicable to:

Accepted Answer

A)  entities coming under the Corporations Act, entities in the public sector and the remainder of the non-corporate sector entities 
B)  entities coming under the Corporations Act 
C)  entities coming under the Corporations Act and entities in the public sector 
D)  none of the above 
A)  entities coming under the Corporations Act, entities in the public sector and the remainder of the non-corporate sector entities 
B)  entities coming under the Corporations Act 
C)  entities coming under the Corporations Act and entities in the public sector 
D)  none of the above

Question 16

The ASX listing rules include two mandatory requirements relating to their corporate governance guidelines.These include a requirement:

Accepted Answer

A)  that the top 500 companies have an audit committee 
B)  that the top 300 companies have an audit committee 
C)  that all listed companies have an audit committee 
D)  that the top 500 companies have an independent audit committee 
A)  that the top 500 companies have an audit committee 
B)  that the top 300 companies have an audit committee 
C)  that all listed companies have an audit committee 
D)  that the top 500 companies have an independent audit committee

Question 17

The Corporations Act 2001 requires that the financial reports must give:

Accepted Answer

A)  a true and fair view of the financial position and performance and of the accounting standards 
B)  a true and fair view of the reporting position 
C)  a true and fair view of the accounting standards 
D)  a true and fair view of the financial position and performance 
A)  a true and fair view of the financial position and performance and of the accounting standards 
B)  a true and fair view of the reporting position 
C)  a true and fair view of the accounting standards 
D)  a true and fair view of the financial position and performance

Question 18

Failure of directors,who are not members of CPA Australia and ICCA,to comply with the requirements of APS1 could result in:

Accepted Answer

A)  disciplinary action 
B)  fines 
C)  all of the above 
D)  none of the above 
A)  disciplinary action 
B)  fines 
C)  all of the above 
D)  none of the above

Question 19

Which statement concerning AASB Interpretations is not correct?

Accepted Answer

A)  In 2006 the AASB decided to take over the role of the Urgent Issues Group 
B)  The AASB has set up an Interpretations Agenda Committee comprising the chairman and two other AASB members 
C)  Interpretations of IASB standards made by the IFRIC are not relevant in Australia 
D)  None of the above, i.e., all statements are correct 
A)  In 2006 the AASB decided to take over the role of the Urgent Issues Group 
B)  The AASB has set up an Interpretations Agenda Committee comprising the chairman and two other AASB members 
C)  Interpretations of IASB standards made by the IFRIC are not relevant in Australia 
D)  None of the above, i.e., all statements are correct

Question 20

The role of the Australian Securities and Investments Commission is to:

Accepted Answer

A)  issue accounting standards 
B)  administer and ensure compliance with the Corporations Act 
C)  develop the conceptual framework 
D)  supervise the AASB 
A)  issue accounting standards 
B)  administer and ensure compliance with the Corporations Act 
C)  develop the conceptual framework 
D)  supervise the AASB

Exam 1: Institutional Arrangements for Setting Accounting Standards in Australia

Give an overview of the present institutional arrangements for standard setting in Australia.

It is incorrect that under the Corporations Act 2001:

It is not part of the role of the Financial Reporting Council:

Under section 296 of the Corporations Act 2001,directors of companies that fail to comply with AASB accounting standards may be prosecuted by:

The body that oversees the operation of the Auditing and Assurance Standards Board is:

Explain how accounting standards are currently enforced in Australia.

The most correct description of the stages in the development of AASB accounting standards is:

The ASX listing rules:

Which of the following is/are true concerning the issue of accounting standards in Australia after internationalisation?

Explain and discuss the procedures currently operating in Australia for dealing with issues involving the development of AASB Interpretations.

Discuss the role of the accounting bodies in the regulation of Australian accounting practice.

Interpretation Advisory Panels make recommendations on particular issues to:

Compliance with accounting standards by reporting entities in the public sector is required by:

Additional disclosure requirements by the ASX for stock exchange listed companies are all of the following,except:

The AASB has responsibility for making accounting standards applicable to:

The ASX listing rules include two mandatory requirements relating to their corporate governance guidelines.These include a requirement:

The Corporations Act 2001 requires that the financial reports must give:

Failure of directors,who are not members of CPA Australia and ICCA,to comply with the requirements of APS1 could result in:

Which statement concerning AASB Interpretations is not correct?

The role of the Australian Securities and Investments Commission is to:

A Conceptual Framework: Scope, reporting Entity and the Objective of Financial Report

A Conceptual Framework: the Fundamentals of General Purpose Financial Reporting

A Conceptual Framework: Recognition and Measurement of the Elements of Financial Statements

The Choice of Accounting Methods

The Balance Sheet: an Overview

Accounting for Current Assets

Accounting for Property, plant and Equipment

Accounting for Company Income Tax

Accounting for Investments

Accounting for Intangible Assets

Accounting for Leases

Accounting for Employee Benefits

Accounting for Financial Instruments

Equity

The Income Statement

The Cash Flow Statement

Financial Reporting: Segment Reporting, value Added Statements, highlights Statements and Future-Oriented Financial Information

Further Financial Reporting Issues

Accounting for the Extractive Industries

Accounting for Real Estate Development and Construction Contracts

Accounting for Agricultural Activity

Accounting for Superannuation Plans

Accounting for Financial Institutions

Financial Reporting in the Public Sector

International Accounting Standards, harmonisation and Convergence

Foreign Currency Translation

Accounting for Corporate Social Responsibilities

Ethics in Accounting

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