Question 1

In November 2007 which organization removed the requirement that foreign private issuers reconcile their financial statements to U.S.GAAP?

Accepted Answer

A) IASB 
B) EU 
C) SEC 
D) FASB 
A) IASB 
B) EU 
C) SEC 
D) FASB C

Question 2

Which of the following terms describe the qualitative characteristic of information usefulness?

Accepted Answer

A) Relevance 
B) Understandability 
C) Representational faithfulness 
D) All of the above are characteristics of information usefulness. 
A) Relevance 
B) Understandability 
C) Representational faithfulness 
D) All of the above are characteristics of information usefulness. D

Question 3

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,financial statement disclosures,and format 
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,financial statement disclosures,and format 
D) Authority of the European Commission to pass laws C

Question 4

The International Financial Reporting Standards (IFRS)have been translated into how many languages?

Accepted Answer

A) None. They are only written in the official language of the IASB. 
B) More than 30 
C) More than 100 
D) Six (6): Chinese,English,German,Japanese,Russian,and Spanish 
A) None. They are only written in the official language of the IASB. 
B) More than 30 
C) More than 100 
D) Six (6): Chinese,English,German,Japanese,Russian,and Spanish

Question 5

In 1990,the European Commission stopped issuing directives related to accounting. Why?

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 6

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 7

Which of the following statements is NOT true about Anglo-American Accounting?

Accepted Answer

A) There is a strong reliance on professional judgment. 
B) Financial reporting focuses on the firm with an investor orientation. 
C) There is a strong emphasis on measurement of taxable income. 
D) Audits report on the adherence to the principle of fair presentation. 
A) There is a strong reliance on professional judgment. 
B) Financial reporting focuses on the firm with an investor orientation. 
C) There is a strong emphasis on measurement of taxable income. 
D) Audits report on the adherence to the principle of fair presentation.

Question 8

The IASB's Framework for Preparation and Presentation of Financial Statements (1989)implies that the most important group of users is:

Accepted Answer

A) government. 
B) general public. 
C) creditors. 
D) investors. 
A) government. 
B) general public. 
C) creditors. 
D) investors.

Question 9

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 10

What is Anglo-American Accounting?

Accepted Answer

A) It is an association of British and American accounting regulatory agencies. 
B) The accounting systems used in the U.S.,U.K.,and other English-speaking countries 
C) This refers to the basis used by the IASB to judge the appropriateness of international accounting standards. 
D) All of the above are true. 
A) It is an association of British and American accounting regulatory agencies. 
B) The accounting systems used in the U.S.,U.K.,and other English-speaking countries 
C) This refers to the basis used by the IASB to judge the appropriateness of international accounting standards. 
D) All of the above are true.

Question 11

What is the intent of IFRS 1?

Accepted Answer

A) To establish the guidelines for financial statement presentation 
B) Provide the working definitions of accounting elements 
C) It gives guidance to first-time adopters of IFRS issued by the IASB. 
D) To provide the framework for setting international accounting standards 
A) To establish the guidelines for financial statement presentation 
B) Provide the working definitions of accounting elements 
C) It gives guidance to first-time adopters of IFRS issued by the IASB. 
D) To provide the framework for setting international accounting standards

Question 12

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

Accepted Answer

A) Detailed prescriptions or rules encourage accountants to look for ways to circumvent 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 been demonstrated to encourage the greatest economic development. 
A) Detailed prescriptions or rules encourage accountants to look for ways to circumvent 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 been demonstrated to encourage the greatest economic development.

Question 13

What is the primary focus of IAS 1?

Accepted Answer

A) To establish the guidelines for financial statement presentation 
B) Provide guidance to first-time adopters of IFRS issued by the IASB 
C) Establish the framework that is to guide the IASB in setting accounting standards 
D) None of the above. 
A) To establish the guidelines for financial statement presentation 
B) Provide guidance to first-time adopters of IFRS issued by the IASB 
C) Establish the framework that is to guide the IASB in setting accounting standards 
D) None of the above.

Question 14

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 15

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

Accepted Answer

A) Convergence would decrease feelings of nationalism. 
B) Convergence is desirable because there is little difference among capital markets in different countries. 
C) Convergence would help to raise the quality of accounting practice internationally. 
D) None of the above statements is true. 
A) Convergence would decrease feelings of nationalism. 
B) Convergence is desirable because there is little difference among capital markets in different countries. 
C) Convergence would help to raise the quality of accounting practice internationally. 
D) None of the above statements is true.

Question 16

Which of the following is a difference among the U.S.and other Anglo-American 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) U)S.standards are becoming more rigid than 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) U)S.standards are becoming more rigid than U.K.standards.

Question 17

What basis does the International Accounting Standards Board use in formulating its IFRS?

Accepted Answer

A) Detailed rules to govern accounting practice 
B) A framework of accounting principles 
C) Typical tax laws of western nations 
D) Exceptions or unusual circumstances that require special attention 
A) Detailed rules to govern accounting practice 
B) A framework of accounting principles 
C) Typical tax laws of western nations 
D) Exceptions or unusual circumstances that require special attention

Question 18

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 19

What is the role of the liaison members of the International Accounting Standards Board?

Accepted Answer

A) To facilitate information exchange and cooperation between the FASB and the IASB 
B) To eliminate the political influences on the IASB and national accounting bodies 
C) To enforce adherence to the fundamental principles of the IASB 
D) All of the above 
A) To facilitate information exchange and cooperation between the FASB and the IASB 
B) To eliminate the political influences on the IASB and national accounting bodies 
C) To enforce adherence to the fundamental principles of the IASB 
D) All of the above

Question 20

According to the Framework for Preparation and Presentation of Financial Statements of the IASB,which of the following is NOT required for asset recognition?

Accepted Answer

A) Control of the resource 
B) Ownership of the resource 
C) Future economic benefits 
D) Reliable measurement of the cost or value of the resource 
A) Control of the resource 
B) Ownership of the resource 
C) Future economic benefits 
D) Reliable measurement of the cost or value of the resource

In November 2007 which organization removed the requirement that foreign private issuers reconcile their financial statements to U.S.GAAP?

Which of the following terms describe the qualitative characteristic of information usefulness?

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

The International Financial Reporting Standards (IFRS)have been translated into how many languages?

In 1990,the European Commission stopped issuing directives related to accounting. Why?

What is the official language of the IASB?

Which of the following statements is NOT true about Anglo-American Accounting?

The IASB's Framework for Preparation and Presentation of Financial Statements (1989)implies that the most important group of users is:

The International Accounting Standards Board was preceded by:

What is Anglo-American Accounting?

What is the intent of IFRS 1?

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

What is the primary focus of IAS 1?

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

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

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

What basis does the International Accounting Standards Board use in formulating its IFRS?

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?

What is the role of the liaison members of the International Accounting Standards Board?

According to the Framework for Preparation and Presentation of Financial Statements of the IASB,which of the following is NOT required for asset recognition?

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

In November 2007 which organization removed the requirement that foreign private issuers reconcile their financial statements to U.S.GAAP?

Which of the following terms describe the qualitative characteristic of information usefulness?

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

The International Financial Reporting Standards (IFRS)have been translated into how many languages?

In 1990,the European Commission stopped issuing directives related to accounting. Why?

What is the official language of the IASB?

Which of the following statements is NOT true about Anglo-American Accounting?

The IASB's Framework for Preparation and Presentation of Financial Statements (1989)implies that the most important group of users is:

The International Accounting Standards Board was preceded by:

What is Anglo-American Accounting?

What is the intent of IFRS 1?

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

What is the primary focus of IAS 1?

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

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

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

What basis does the International Accounting Standards Board use in formulating its IFRS?

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?

What is the role of the liaison members of the International Accounting Standards Board?

According to the Framework for Preparation and Presentation of Financial Statements of the IASB,which of the following is NOT required for asset recognition?

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