IFRS Exam 1 100% Correct Answers Verified Latest 2024 Version
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1. What does IFRS stand for?
a. International Financial Reporting Structure
b. International Financial Reporting Standards
c. Intercontinental Financial Reporting Standards
d. Intercontinental Finance Reporting Structure - b
2. What is the goal of IFRS? - The goal of IFRS is to achieve a singl...
IFRS Exam 1 | 100% Correct Answers |
Verified | Latest 2024 Version
1. What does IFRS stand for?
a. International Financial Reporting Structure
b. International Financial Reporting Standards
c. Intercontinental Financial Reporting Standards
d. Intercontinental Finance Reporting Structure - ✔✔b
2. What is the goal of IFRS? - ✔✔The goal of IFRS is to achieve a single set of high-quality, common
accounting standards used around the world.
3. Identify the correct statement about IFRS usage in the US:
a. IFRS is intended for publicly accountable entities and has not yet been adopted in the US.
b. IFRS is intended for non publicly accountable entities and has not yet been adopted in the US.
c. IFRS is intended for public accountable entities and will be adopted by the US in 2016. - ✔✔a
4. What does IFRS for SMEs stand for and for whom are these standards intended? - ✔✔IFRS for SMEs
stands for International Financial Reporting Standards for Small and Medium-sized Enterprises. These
standards are intended for entities that do not have public accountability. These standards have been
accepted by the AICPA as an acceptable alternative reporting standard to US GAAP for non-SEC
registrants.
5. Is US GAAP better and of higher quality than IFRS? - ✔✔While this is an opinion question, it cannot be
definitively stated that US GAAP is better or of higher quality than IFRS or that IFRS is better or of higher
quality than US GAAP.
6. US GAAP and IFRS are more alike than different for most commonly encountered transactions.
a. True b. False - ✔✔a
,7. List one advantage that some could argue that IFRS standard setters had in establishing international
standards. - ✔✔IFRS standard setters had the following advantages in establishing international
standards:
► Being able to obtain a greater amount of global perspective.
► Being able to draw upon the latest standards.
► Being able to remedy perceived problems identified in practice.
► Having an annual improvement process to enhance the clarity and consistency of IFRS, which allows
the consideration of current thinking and practice.
► Being able to focus more intently on a principles orientation.
8. As a general rule:
a. IFRS standards are broader with less rules and with limited interpretive guidance.
b. US GAAP standards are broader with more rules and with limited interpretive guidance.
c. IFRS contains underlying principles but is more specific and rules oriented with far more "bright lines,"
comprehensive implementation guidance and industry interpretations.
d. US GAAP standards contain underlying principles but are more specific and rules oriented with more
"bright lines," comprehensive implementation guidance and industry interpretations.
e. a. and d.
f. b. and c. - ✔✔e
e. As a general rule, IFRS standards are broader with less rules and with limited interpretive guidance. US
GAAP contains underlying principles as well but is more specific and rules oriented with far more "bright
lines," and comprehensive implementation guidance and industry interpretations.
Who is the current Chairman of the IASB? - ✔✔Hans Hoogervorst
What is your opinion about the level of US representation on the IASB? - ✔✔The US representation is
too dominant given the fact that the US has not yet committed to adopt
IFRS. As so many other countries have committed to adoption, the US should have less of a
"voice" relative to other countries.
► The US should not have any representation given the fact that the US has not yet committed to
adopt IFRS. The US shouldn't be able to give opinions on international standards if the US
doesn't intend to follow them.
, ► The US representation is appropriate or could even be greater. Regardless of whether the US
decides to adopt IFRS, the US is a dominant player in the world economy and capital markets and should
be able to exert a significant amount of influence over international standard setting.
Name two of the bodies within the structure of the international standard setters. - ✔✔International
Accounting Standards Board
► IFRS Foundation
► Monitoring Board
► IFRS Advisory Council
► IFRS Interpretations Committee
What is the role of the Monitoring Board? - ✔✔assist in nominating and appointing individuals to the
IFRS Foundation trustee positions.
Why are some standards titled IFRS while others are IAS? - ✔✔Standards promulgated by the IASC
(which was in existence from 1973 through 1999) are titled IAS while standards promulgated by the IASB
(which has been in existence since 2000) are titled IFRS.
In 2007, the SEC eliminated the reconciliation to US GAAP requirement for what filers? - ✔✔the SEC
eliminated the reconciliation to US GAAP requirement for foreign private issuers (FPIs) reporting using
IFRS.
What was the name of the agreement executed between the FASB and IASB in 2006 and reaffirmed in
2009 that helped to establish priorities for their joint work program? - ✔✔In 2006, the FASB and IASB
published a Memorandum of Understanding. The MOU set forth the priorities in the joint work program
of the FASB and IASB in the form of milestones to be reached. The MOU was reaffirmed in November
2009.
What is the main vehicle for consulting the public in the international standard-setting process? a.
Developing and publishing a discussion paper
b. Developing and publishing an exposure draft
c. Developing and publishing a standard.
d. Conducting a meeting after a standard is published. - ✔✔b
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