Deck 2: International Accounting: Institutional Framework and Standards

Question 1

The international accounting standards are called:

A) IAS and SSAPs
B) FRS and SSAPs
C) FRS and IFRS
D) IFRS and IAS

Answer 1

IFRS and IAS

Question 2

Which of the following statements is TRUE?

A) International Financial Reporting Standards are now adopted by every country in the world
B) All companies quoted on all exchanges in the world have to prepare their accounts using IFRS
C) The UK is still harmonising its accounting standards with IFRS.
D) The US are in charge of the IASB

Answer 2

The UK is still harmonising its accounting standards with IFRS.

Question 3

Which of the following bodies advises the IASB on issues such as the IASB's agenda, the IASB's timetable and implementing standards?

A) SAC
B) IASC Foundation
C) IFRIC
D) IASC

Answer 3

SAC

Question 4

The Role of the IFRC is to:

A) Oversee the standard setting and regulatory process
B) Control the accountancy profession
C) Formulate accounting standards
D) Review defective accounts

Question 5

IAS 10 deals with:

A) The presentation of financial statements
B) The valuation of inventories
C) The disclosures in the statement of cash flows
D) Events after the reporting period

Question 6

IAS 37 deals with:

A) The accounting for property, plant and equipment
B) Revenue recognition
C) Accounting for provisions, contingent liabilities and contingent assets
D) Accounting for intangible assets

Question 7

Which of the following issues international accounting standards?

A) The international auditing practices board
B) The international stock exchange
C) The international accounting standards board
D) Representatives of the government of the six main trade countries in the world.

Question 8

When setting accounting standards DP stands for:

A) Diagnostic process
B) Detailed plan
C) Discussion presentation
D) Discussion paper

Question 9

When setting accounting standards ED stands for:

A) Edition Draft
B) Exposure Draft
C) Editor Draft
D) Emerging Draft

Question 10

Which of the following depicts the correct order of consultation when issuing an international accounting standard?

A) Research (agenda), Discussion Paper, Exposure Draft, IFRS
B) Discussion Paper, Research (agenda), Exposure Draft, IFRS
C) Exposure Draft, Research (agenda), Discussion Paper, IFRS
D) Research (agenda), Exposure Draft, Discussion Paper, IFRS

Question 11

IFRS 3 deals with:

A) Non-current assets held for sale and discontinuing activities
B) Intangible assets
C) Events after the reporting period
D) Business combinations

Question 12

IFRS 5 deals with:

A) Non-current assets held for sale and discontinuing activities
B) Intangible assets
C) Events after the reporting period
D) Business combinations

Question 13

IAS 18 Revenue sets out when the sale of goods should be recognised. Given the conceptual framework of accounting, which of the following statements is false?

A) Revenue can only be recognised if costs can be measured reliably
B) A reliable measure of the economic benefits must be possible for revenue to be recognised
C) Revenue should be recognised when the risks and rewards of ownership are transferred to the buyer
D) Revenue should not be recognised when the goods remain on the seller's premises.

Question 14

Which of the following is not a method that is utilised by the IASB to achieve their objective
Of 'providing the world's integrating capital markets with a common language for financial reporting' (IASB, 2008).

A) Harmonisation of accounting standards internationally
B) Independence in the standard setting process
C) Promotion of an open, thorough and transparent due process
D) Having a member sit on the board of directors of each stock exchange to assist harmonisation

Question 15

Which of the following is not an objective of the SAC?

A) To nominate members for appointment by the IASC foundation to IASB and other bodies
B) To provide an input to the IASB's agenda
C) To assist in the establishment of the IASB's project timetable
D) To provide advice on projects, with particular emphasis on practical matters and implementation issues.

Question 16

IAS 7 deals with:

A) The statement of sources and applications of funds
B) The statement of cash flows
C) The cash flow statement
D) The funds flow statement