Question 1

Who issues International Financial Reporting Standards?

Accepted Answer

The International Accounting Standards Board

Answer

The government

Answer

The stock exchange

Answer

The IFRS Advisory Committee

Question 2

Which of the following statements is/are true?

1 -The IFRS Interpretations Committee is a forum for the IASB to consult with the outside world.

2- The IFRS Foundation produces IFRSs. The IFRS Foundation is overseen by the IASB.

3- One of the objectives of the IFRS Foundation is to bring about a convergence of national accounting standards and IFRSs.

Accepted Answer

Answer

Answer

2 and 3 only

Answer

1 and 3 only

Question 3

What is the role of the IASB?

Accepted Answer

Formulate international financial reporting standards

Answer

Oversee the standard setting and regulatory process

Answer

Review defective accounts

Answer

Control the accountancy profession

Question 4

The process for developing an International Financial Reporting Standard involves a number of stages. Following receipt and review of comments on a Discussion Paper, what will be the next step undertaken by the IASB?

Accepted Answer

Publication of an Exposure Draft

Answer

Consultation with the Advisory Committee

Answer

Issue of a final IFRS

Answer

Establishment of an Advisory Committee

Question 5

Which one of the following would not be an advantage of adopting IFRS?

Accepted Answer

Accountants and auditors would have more defence in case of litigation.

Answer

Cross-border listing would be facilitated

Answer

It would be easier for investors to compare the financial statements of companies with those of foreign competitors.

Answer

Multinational companies could more easily transfer accounting staff across national borders.

Question 6

Which of the following is not an objective of the IFRS foundation?

Accepted Answer

to enforce IFRSs in most countries

Answer

to develop IFRSs through the IASB

Answer

to bring about convergence of accounting standards and IFRSs

Answer

to take account of the financial reporting needs of SMEs

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