Question 1

Which of the following are differences between U.S.GAAP and IFRS?

Accepted Answer

A)  U.S.GAAP allows revaluation of nonfinancial assets
B)  U.S.GAAP prohibits LIFO inventory accounting
C)  U.S.GAAP and IFRS adopt contrasting approaches to revenue recognition
D)  IFRS provides substantially more industry guidance C

Question 2

IFRS requires disclosure that explains how the transition from previous GAAP to IFRS affect the entity's reported:

Accepted Answer

A)  Financial position
B)  Financial performance
C)  Cash flows
D)  All of the above D

Question 3

In learning IFRS,accounting students and educators)must learn to:

Accepted Answer

A)  make judgments in a world of uncertainty
B)  apply a variety of valuation models
C)  focus on underlying concepts and their application
D)  research standard and interpretations
E)  all of the above E

Question 4

Which of the following statements regarding IFRS 1 is true?

Accepted Answer

A)  The core principle of IFRS 1 is for the entity to apply the same accounting principles in its opening balance sheet and across all periods in the first IFRS financial statements.
B)  A statement of financial position must be prepared for two years prior to establish opening balances for the prior year.
C)  All of the above
D)  None of the above

Question 5

Which of the following are the main financial values of adopting IFRS?

Accepted Answer

A)  Mitigating financial reporting risk,decreasing financial transparency risk,and creating operational efficiencies
B)  Strengthening financial performance,decreasing financial transparency risk,and creating operational efficiencies
C)  Strengthening financial performance,decreasing financial transparency risk,increasing the comparability of financial statement
D)  Mitigating financial reporting risk,decreasing financial transparency risk,increasing the comparability of financial statement

Question 6

IFRS requires accounting students and educators)to realize that virtually every number in financial statements:

Accepted Answer

A)  results from judgment and estimates
B)  has a basis in valuation and fair value
C)  is rooted in the conceptual framework
D)  is based on an application of a standard
E)  all of the above

Question 7

Which of the following statements is true regarding IFRS accounting education?

Accepted Answer

A)  The emphasis in IFRS accounting will be on memorization of rules
B)  The emphasis in IFRS accounting will be on the application of the conceptual framework
C)  The bookkeeping techniques are essential knowledge.
D)  The single analytical effect of transactions resulting from business decisions and changes in the environment must be understood.

Question 8

Which of the following does IFRS require accounting students and educators to learn?

Accepted Answer

A)  To master specific IFRS policies to better accept the new accounting standards
B)  To focus on underlying concepts and their application
C)  To realize the difference between U.S.GAAP and IFRS to better develop the financial statements
D)  To research standards and interpretations on GAAP in order to differentiate policies from IFRS

Question 9

Which of the following is the correct order of steps that should be applied to the opening IFRS statement of financial position and must be prepared and presented on the date of transition to IFRS?
1)Identify all assets and liabilities required under the IFRS
2)Reclassify items previously under GAAP that were recognized as one type of asset or liability but are now recognized as a different asset or liability under the IFRS
3)Remove assets and liabilities not permitted under the IFRS
4)Measure the assets and liabilities recognized under the IFRS

Accepted Answer

A)  1) 2) 3) 4) 
B)  1) 3) 2) 4) 
C)  1) 2) 4) 3) 
D)  1) 4) 2) 3)

Question 10

Which is one of the FASB/IASB convergence projects?

Accepted Answer

A)  Fixed Asset impairment
B)  Revenue recognition
C)  Financial instruments with characteristics of liability
D)  Lower of cost or market measurement guidance

Question 11

Which is one of the key activities that will lead to a company's successful IFRS conversion?

Accepted Answer

A)  Development of a conversion timeline
B)  Implementation of effective training only in the accounting department
C)  Development of a new conversion strategy different from Europe
D)  Establishment of a project management team which can create own specific plan for individual company's conversion

Exam 6: The Current Status and Future of IFRS