Question 1

Which of the following qualitative characteristics make financial statement information useful?

Accepted Answer

A) Relevance 
B) Understandability 
C) Reliability 
D) All of the above. 
A) Relevance 
B) Understandability 
C) Reliability 
D) All of the above.

Question 2

What is the intent of IFRS 1?

Accepted Answer

A) To establish the guidelines for financial statement presentation 
B) To provide the working definitions of accounting elements 
C) To provide guidance on first-time application of IFRS 
D) To provide the framework for setting international accounting standards 
A) To establish the guidelines for financial statement presentation 
B) To provide the working definitions of accounting elements 
C) To provide guidance on first-time application of IFRS 
D) To provide the framework for setting international accounting standards

Question 3

Who was the first chairman of the International Accounting Standards Board?

Accepted Answer

A) Sir Walter Raleigh 
B) Sir David Tweedie 
C) Sir Paul McCartney 
D) Sir Bryan Carsberg 
A) Sir Walter Raleigh 
B) Sir David Tweedie 
C) Sir Paul McCartney 
D) Sir Bryan Carsberg

Question 4

The "Fourth Directive" issued by the European Commission, which administers the European Union (EU), deals with which of the following?

Accepted Answer

A) Adoption of the euro as the currency used throughout the EU 
B) Consolidated financial statements 
C) Rules for valuation, disclosures requirements, and the format of financial statements 
D) Authority of the European Commission to pass laws 
A) Adoption of the euro as the currency used throughout the EU 
B) Consolidated financial statements 
C) Rules for valuation, disclosures requirements, and the format of financial statements 
D) Authority of the European Commission to pass laws

Question 5

In the 2002 study by the world's six largest public accounting firms concerning convergence with IFRS, what was the most frequently cited concern about convergence?

Accepted Answer

A) Language translation difficulties 
B) Lack of perceived benefit of using IFRS 
C) Complexity of specific IFRS 
D) Preference for national standards 
A) Language translation difficulties 
B) Lack of perceived benefit of using IFRS 
C) Complexity of specific IFRS 
D) Preference for national standards

Question 6

Which of the following statements is true of IFRS 1?

Accepted Answer

A) It does not permit the recognition of intangible assets in balance sheets. 
B) After its issuance in July 2001, it has not been amended as yet. 
C) It deals primarily with fair value measurement of assets. 
D) It provides exemptions to complying with IFRS in specific areas. 
A) It does not permit the recognition of intangible assets in balance sheets. 
B) After its issuance in July 2001, it has not been amended as yet. 
C) It deals primarily with fair value measurement of assets. 
D) It provides exemptions to complying with IFRS in specific areas.

Question 7

Which of the following is a difference among the U.S.and other Anglo-Saxon countries in terms of accounting standards?

Accepted Answer

A) The U.S.does not adhere to the "true and fair view" approach. 
B) The U.S.is more private-sector oriented. 
C) The U.S.always follows a conceptual framework when developing accounting standards. 
D) The U.S.standards are becoming more rigid than the U.K.standards. 
A) The U.S.does not adhere to the "true and fair view" approach. 
B) The U.S.is more private-sector oriented. 
C) The U.S.always follows a conceptual framework when developing accounting standards. 
D) The U.S.standards are becoming more rigid than the U.K.standards.

Question 8

From a practical standpoint, what is the goal of accounting standards harmonization?

Accepted Answer

A) Creating one set of standards used throughout the world 
B) Reducing the conflict among national accounting standards 
C) Producing accounting standards that are unique for each country 
D) Forcing compliance with IASB regulations 
A) Creating one set of standards used throughout the world 
B) Reducing the conflict among national accounting standards 
C) Producing accounting standards that are unique for each country 
D) Forcing compliance with IASB regulations

Question 9

What is the official language of the IASB?

Accepted Answer

A) English 
B) French 
C) Spanish 
D) German 
A) English 
B) French 
C) Spanish 
D) German

Question 10

According to the IASB, what is needed for IFRS to work effectively?

Accepted Answer

A) Commitment from auditors to resist client pressures. 
B) Professional judgment in the public interest on the part of companies and auditors. 
C) Financial statement preparers must produce reports that faithfully represent all transactions. 
D) All of the above are conditions for effective standards. 
A) Commitment from auditors to resist client pressures. 
B) Professional judgment in the public interest on the part of companies and auditors. 
C) Financial statement preparers must produce reports that faithfully represent all transactions. 
D) All of the above are conditions for effective standards.

Question 11

In addition to the International Accounting Standards Committee (IASC), which of the following organizations was considered to be one of the two most important forces in efforts to harmonize accounting standards?

Accepted Answer

A) U.S.Financial Accounting Standards Board (FAS
B)  
B) United Nations (UN) 
C) North Atlantic Treaty Organization (NATO) 
D) European Union (EU) 
A) U.S.Financial Accounting Standards Board (FAS
B)  
B) United Nations (UN) 
C) North Atlantic Treaty Organization (NATO) 
D) European Union (EU)

Question 12

Which of the following items is considered to be the most significant impediment to accounting convergence?

Accepted Answer

A) Nationalism 
B) Lack of accounting knowledge 
C) Language differences 
D) High cost of convergence 
A) Nationalism 
B) Lack of accounting knowledge 
C) Language differences 
D) High cost of convergence

Question 13

Why did the European Commission stop issuing directives related to accounting in 1990?

Accepted Answer

A) The EU was leaving the formulation of accounting standards up to the IASC. 
B) The European Commission had finished the task of formulating accounting standards for the European Union. 
C) Accounting harmonization had been completed. 
D) The Commission found that its directives were unenforceable. 
A) The EU was leaving the formulation of accounting standards up to the IASC. 
B) The European Commission had finished the task of formulating accounting standards for the European Union. 
C) Accounting harmonization had been completed. 
D) The Commission found that its directives were unenforceable.

Question 14

The International Accounting Standards Board was preceded by:

Accepted Answer

A) the IOSCO. 
B) the ASEAN. 
C) the IASC. 
D) the NRC. 
A) the IOSCO. 
B) the ASEAN. 
C) the IASC. 
D) the NRC.

Question 15

Which of the following statements is believed to be true about accounting convergence by proponents of convergence?

Accepted Answer

A) Convergence would not affect the feelings of nationalism. 
B) Convergence is desirable because there is very little difference among capital markets in different countries. 
C) Convergence would help to raise the quality of accounting practices internationally. 
D) None of the above statements is true. 
A) Convergence would not affect the feelings of nationalism. 
B) Convergence is desirable because there is very little difference among capital markets in different countries. 
C) Convergence would help to raise the quality of accounting practices internationally. 
D) None of the above statements is true.

Question 16

The early (1973-1988) harmonization efforts of the International Accounting Standards Committee (IASC) created standards that have been described as a "lowest-common-denominator" approach.What was the effect of these first international accounting standards?

Accepted Answer

A) The IASC standards accommodated existing accounting practices in various countries. 
B) Comparability of financial statements across countries was achieved. 
C) It resulted in few companies being in compliance with IASC standards. 
D) All of the above 
A) The IASC standards accommodated existing accounting practices in various countries. 
B) Comparability of financial statements across countries was achieved. 
C) It resulted in few companies being in compliance with IASC standards. 
D) All of the above

Question 17

What language is used to develop the International Financial Reporting Standards (IFRS)?

Accepted Answer

A) French 
B) German 
C) English 
D) Spanish 
A) French 
B) German 
C) English 
D) Spanish

Question 18

Which of the following statements is true about accounting convergence?

Accepted Answer

A) Convergence is a synonym for harmonization. 
B) Convergence is the opposite of standardization. 
C) Convergence, unlike harmonization, takes place over a period of time. 
D) Convergence means developing high-quality standards in partnership with national standard-setters. 
A) Convergence is a synonym for harmonization. 
B) Convergence is the opposite of standardization. 
C) Convergence, unlike harmonization, takes place over a period of time. 
D) Convergence means developing high-quality standards in partnership with national standard-setters.

Question 19

Why does the IASB believe that a principles-based approach to standard setting is superior to a rules-based approach?

Accepted Answer

A) Detailed guidance or rules encourage accountants to look for ways around the rules rather than trying to provide useful information. 
B) Principles-based standard setting is less costly to undertake than rules-based standard formulation. 
C) It is desirable to have all corporations in all countries using the same accounting practice. 
D) A conceptual framework for standard setting has demonstrated to encourage the greatest economic development. 
A) Detailed guidance or rules encourage accountants to look for ways around the rules rather than trying to provide useful information. 
B) Principles-based standard setting is less costly to undertake than rules-based standard formulation. 
C) It is desirable to have all corporations in all countries using the same accounting practice. 
D) A conceptual framework for standard setting has demonstrated to encourage the greatest economic development.

Question 20

To create an appropriate mix of members of the IASB, since 2012 the board includes:

Accepted Answer

A) eight auditors. 
B) eight academic representatives. 
C) four members of the FASB. 
D) a diverse geographical balance of members. 
A) eight auditors. 
B) eight academic representatives. 
C) four members of the FASB. 
D) a diverse geographical balance of members.

Which of the following qualitative characteristics make financial statement information useful?

What is the intent of IFRS 1?

Who was the first chairman of the International Accounting Standards Board?

The "Fourth Directive" issued by the European Commission, which administers the European Union (EU), deals with which of the following?

In the 2002 study by the world's six largest public accounting firms concerning convergence with IFRS, what was the most frequently cited concern about convergence?

Which of the following statements is true of IFRS 1?

Which of the following is a difference among the U.S.and other Anglo-Saxon countries in terms of accounting standards?

From a practical standpoint, what is the goal of accounting standards harmonization?

What is the official language of the IASB?

According to the IASB, what is needed for IFRS to work effectively?

In addition to the International Accounting Standards Committee (IASC), which of the following organizations was considered to be one of the two most important forces in efforts to harmonize accounting standards?

Which of the following items is considered to be the most significant impediment to accounting convergence?

Why did the European Commission stop issuing directives related to accounting in 1990?

The International Accounting Standards Board was preceded by:

Which of the following statements is believed to be true about accounting convergence by proponents of convergence?

The early (1973-1988) harmonization efforts of the International Accounting Standards Committee (IASC) created standards that have been described as a "lowest-common-denominator" approach.What was the effect of these first international accounting standards?

What language is used to develop the International Financial Reporting Standards (IFRS)?

Which of the following statements is true about accounting convergence?

Why does the IASB believe that a principles-based approach to standard setting is superior to a rules-based approach?

To create an appropriate mix of members of the IASB, since 2012 the board includes:

Introduction to International Accounting

Worldwide Accounting Diversity

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Comparative Accounting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Additional Financial Reporting Issues

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Strategic Accounting Issues in Multinational Corporations

Comparative International Auditing and Corporate Governance

International Corporate Social Reporting

Filters

Exam 3: International Convergence of Financial Reporting

Which of the following qualitative characteristics make financial statement information useful?

What is the intent of IFRS 1?

Who was the first chairman of the International Accounting Standards Board?

The "Fourth Directive" issued by the European Commission, which administers the European Union (EU), deals with which of the following?

In the 2002 study by the world's six largest public accounting firms concerning convergence with IFRS, what was the most frequently cited concern about convergence?

Which of the following statements is true of IFRS 1?

Which of the following is a difference among the U.S.and other Anglo-Saxon countries in terms of accounting standards?

From a practical standpoint, what is the goal of accounting standards harmonization?

What is the official language of the IASB?

According to the IASB, what is needed for IFRS to work effectively?

In addition to the International Accounting Standards Committee (IASC), which of the following organizations was considered to be one of the two most important forces in efforts to harmonize accounting standards?

Which of the following items is considered to be the most significant impediment to accounting convergence?

Why did the European Commission stop issuing directives related to accounting in 1990?

The International Accounting Standards Board was preceded by:

Which of the following statements is believed to be true about accounting convergence by proponents of convergence?

The early (1973-1988) harmonization efforts of the International Accounting Standards Committee (IASC) created standards that have been described as a "lowest-common-denominator" approach.What was the effect of these first international accounting standards?

What language is used to develop the International Financial Reporting Standards (IFRS)?

Which of the following statements is true about accounting convergence?

Why does the IASB believe that a principles-based approach to standard setting is superior to a rules-based approach?

To create an appropriate mix of members of the IASB, since 2012 the board includes:

Introduction to International Accounting

Worldwide Accounting Diversity

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Comparative Accounting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Additional Financial Reporting Issues

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Strategic Accounting Issues in Multinational Corporations

Comparative International Auditing and Corporate Governance

International Corporate Social Reporting

Filters