Question 1

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 D

Question 2

Which of the following is not a form of public comment and discussion for agenda papers?

Accepted Answer

A)  a motion to order a deadline in publishing a final draft 
B)  a discussion paper outlining a wide range of possible accounting policies on a particular topic 
C)  an invitation to comment seeking feedback on broad proposals 
D)  a draft interpretation of a standard 
A)  a motion to order a deadline in publishing a final draft 
B)  a discussion paper outlining a wide range of possible accounting policies on a particular topic 
C)  an invitation to comment seeking feedback on broad proposals 
D)  a draft interpretation of a standard A

Question 3

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

Accepted Answer

In the private sector,the most important legislation specifying financial reporting requirements isthe Corporations Act 2001,which replaced the Corporations Act 1989.This legislation may be foundat <www.legislation.gov.au>.The Corporate Law Economic Reform Program (CLERP)wascommenced in 1998 as part of the Commonwealth Government's ongoing program to modernisebusiness regulation in Australia.As part of this program,the Corporations Act was simplifiedthrough substantial amendments made in 1998,some of which affected financial reporting.Section292 of the Corporations Act requires the preparation of financial statements for each financialyear by all disclosing entities,all public companies,all large proprietary companies and allregistered schemes

Question 4

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 5

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 6

Penalties that can be imposed by the professional bodies on members who do not comply with accounting standards can be:

Accepted Answer

A)  disciplinary proceedings 
B)  fines 
C)  expulsion from the professional body 
D)  all of the above 
A)  disciplinary proceedings 
B)  fines 
C)  expulsion from the professional body 
D)  all of the above

Question 7

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

Question 8

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 9

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

Accepted Answer

The accounting profession's attitude tow

Question 10

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 11

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 12

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 13

Which of these are the main sources of regulations governing financial reporting in Australia?

Accepted Answer

A)  Government legislation, stock exchange listing rules, accounting standards and pronouncement of FAASB 
B)  Accounting standards, conceptual framework, stock exchange listing rules 
C)  The Corporations Act, the AASB, CLERP 
D)  AASB, FRC, government legislation 
A)  Government legislation, stock exchange listing rules, accounting standards and pronouncement of FAASB 
B)  Accounting standards, conceptual framework, stock exchange listing rules 
C)  The Corporations Act, the AASB, CLERP 
D)  AASB, FRC, government legislation

Question 14

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 15

Explain how accounting standards are currently enforced in Australia.

Accepted Answer

Compliance with APES 205 is mandatory fo

Question 16

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

Accepted Answer

The present arrangement in Australia is

Question 17

Under the Corporations Act the financial report consists of:

Accepted Answer

A)  comprehensive income statement, balance sheet, statement of cash flow, statement of changes in equity, director's declaration, notes to the financial statements 
B)  comprehensive income statement, balance sheet, statement of changes in equity, cash flow statement 
C)  comprehensive income statement, balance sheet, statement of cash flow 
D)  comprehensive income statement, balance sheet, statement of changes in equity 
A)  comprehensive income statement, balance sheet, statement of cash flow, statement of changes in equity, director's declaration, notes to the financial statements 
B)  comprehensive income statement, balance sheet, statement of changes in equity, cash flow statement 
C)  comprehensive income statement, balance sheet, statement of cash flow 
D)  comprehensive income statement, balance sheet, statement of changes in equity

Question 18

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 19

The Corporations Act 2001 requires that the governing board of the company:

Accepted Answer

A)  table standards in the Commonwealth House of Representative and the Senate 
B)  establish accounting standards in preparing financial statements 
C)  provide a true and fair view of the accounting standards 
D)  comply with AASB accounting standards in preparing financial statements 
A)  table standards in the Commonwealth House of Representative and the Senate 
B)  establish accounting standards in preparing financial statements 
C)  provide a true and fair view of the accounting standards 
D)  comply with AASB accounting standards in preparing financial statements

Question 20

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

Exam 1: Institutional Arrangements for Setting Accounting Standards in Australia

The ASX listing rules:

Which of the following is not a form of public comment and discussion for agenda papers?

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

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

Interpretation Advisory Panels make recommendations on particular issues to:

Penalties that can be imposed by the professional bodies on members who do not comply with accounting standards can be:

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

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

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

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

Which statement concerning AASB Interpretations is not correct?

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

Which of these are the main sources of regulations governing financial reporting in Australia?

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

Explain how accounting standards are currently enforced in Australia.

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

Under the Corporations Act the financial report consists of:

The AASB has responsibility for making accounting standards applicable to:

The Corporations Act 2001 requires that the governing board of the company:

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

The Conceptual Framework: Purpose, reporting Entity, the Objective of Financial Reporting, and Qualitative Characteristics

The Conceptual Framework: Definition, recognition and Measurement of the Elements in General Purpose Financial Statements

Fair Value Measurement

The Choice of Accounting Methods

The Statement of Financial Position

Accounting for Current Assets

Accounting for Property, plant and Equipment

Accounting for Company Income Tax

Accounting for Intangible Assets

Accounting for Leases

Accounting for Employee Benefits

Accounting for Financial Instruments

The Statement of Comprehensive Income

Revenue

The Statement of Cash Flows

Financial Reporting: Segment Reporting and Highlights Statements

Further Financial Reporting Issues

Accounting for Extractive Industry

Accounting for Agricultural Activity

Accounting for Superannuation Entities

Accounting for Insurance

International Accounting Standards, harmonisation and Convergence

Foreign Currency Translation

Accounting for Corporate

Ethics in Accounting

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