Question 1

Which inventory method is not allowed under IFRS?

Accepted Answer

A)  FIFO
B)  LIFO
C)  Lower of Cost and Market Method
D)  Periodic inventory method B

Question 2

Which is the primary concern over the adoption of IFRS?

Accepted Answer

A)  The effect on smaller public companies
B)  The effect on bigger public companies
C)  The effect on smaller private companies
D)  The effect on bigger private companies A

Question 3

Which point supports the use of IFRS by U.S.public companies?

Accepted Answer

A)  IFRS presents opportunities for global U.S.companies to lower costs through standardization of financial reporting,centralization of processes,improved controls,and better cash management
B)  Adoption of IFRS results in improvements in liquidity,valuation for companies because the company can interpret the IFRS standards for their own benefits
C)  U.S.companies' competitiveness are strengthened in global capital markets even though the use of IFRS may increase their cost of capital
D)  IFRS is more attractive for public companies than non-public companies A

Question 4

Which is not a characteristic of IFRS?

Accepted Answer

A)  Transparency
B)  Lowering operational risks
C)  Comparability
D)  Financial improvement

Question 5

Resolution of which milestones)is the most important hurdle to be achieved before the SEC moves forward?

Accepted Answer

A)  Sufficient development and application of standards
B)  Independence funding of the IFSC Foundation and the standard setting process
C)  Human capital readiness
D)  A and B

Question 6

What is the appropriate reason why people object to adopting the roadmap?

Accepted Answer

A)  FASB is applicable to broadly concerned with both public and private companies,whereas the IASB is public companies
B)  IASB provide funds to accounting authorities and depend on their decisions to create IFRS
C)  The SEC roadmap does not present,in sufficient detail,the methodology and criteria expected to be applied in assessing the adequacy of IFRS
D)  Even though the comparability of financial statements prepared under IFRS can enhanced due to consistency in most international countries,judgments that are influenced by former country standards

Question 7

The 2011 roundtable was attended by:

Accepted Answer

A)  bigger public firms and investors.
B)  smaller private firms,regulators,and investors.
C)  smaller public firms,regulators,and investors.
D)  none of the above

Question 8

Which country is the only major country not to formally commit to the adoption of IFRS?

Accepted Answer

A)  Japan
B)  Australia
C)  Brazil
D)  U.S.A

Question 9

What is the function of IASCF?

Accepted Answer

A)  Providing supporting funds to professional bodies
B)  Receiving official support from relevant regulatory authorities
C)  Appointing support committees to the IFAC
D)  Creating and issuing the standards of IFRS

Question 10

How has the AICPA promoted the adoption of IFRS?

Accepted Answer

A)  Recommended that the SEC move immediately to allow optional adoption of IFRS by U.S.companies
B)  Supported the goal of a single set of high quality,comprehensive financial reporting standards to be used by public companies of transparent and comparable financial reports throughout the world
C)  Reported that a majority of its members have at least a basic knowledge of IFRS and support this position.
D)  All of the above

Question 11

Which international organization began the movement toward international accounting standards?

Accepted Answer

A)  International Accounting Standard Committee IAS
C)  
B)  International Federation of Accountants IFA
C)  
C)  International Financial Reporting Interpretation Committee IFRI
C)  
D)  Standards Advisory Council SA
C)

Question 12

Which is not a step of developing IFRS in the process?

Accepted Answer

A)  The IASB and staff set an agenda of possible issues to be addressed by IFRS.
B)  A discussion paper DP) is prepared only for IASC committee review.
C)  After considering all comments and additional proposals to its DP,the board may issue an exposure draft E
D)  
D)  IASB may publish a final IFRS to be considered for adoption in the various jurisdictions

Question 13

Which is not a goal of the convergence project by the FASB and IASB?

Accepted Answer

A)  To make their existing financial reporting standards fully compatible as soon as is practical
B)  To coordinate future work programs to ensure that once achieved,compatibility is maintained
C)  FASB and IASB should have one joint commitment of cooperation
D)  All U.S companies need to take IFRS as the accounting standards

Question 14

Which is not a significant change to the U.S.reporting infrastructure that would support the move to IFRS?

Accepted Answer

A)  To solely focus on impact on public companies
B)  To train and educate issuers,regulators,auditors,and investors about IFRS
C)  To transition auditing standards
D)  To adjust regulatory and contractual arrangements

Exam 1: Background of IFRS