Question 1

According to Sir Bryan Carsberg,former IASC Secretary-General,what is the most significant cost of accounting diversity?

Accepted Answer

A) The time expended by accountants to create multiple sets of financial statements conforming to different national standards 
B) The cost of the IASB to regulate compliance with many national accounting standards 
C) The reduction in effectiveness of the international markets for capital 
D) The resources used by countries in legislating different sets of accounting standards 
A) The time expended by accountants to create multiple sets of financial statements conforming to different national standards 
B) The cost of the IASB to regulate compliance with many national accounting standards 
C) The reduction in effectiveness of the international markets for capital 
D) The resources used by countries in legislating different sets of accounting standards

Question 2

De facto harmonization refers to:

Accepted Answer

A) the process of making accounting practice consistent across countries. 
B) the process of making accounting regulations consistent internationally. 
C) forcing accounting differences to be resolved through litigation. 
D) creating one set of accounting standards. 
A) the process of making accounting practice consistent across countries. 
B) the process of making accounting regulations consistent internationally. 
C) forcing accounting differences to be resolved through litigation. 
D) creating one set of accounting standards.

Question 3

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 4

Of the 16 members of the International Accounting Standards Board (IASB),how many work for the board on a full-time basis?

Accepted Answer

A) 8 
B) 13 
C) 10 
D) 0 
A) 8 
B) 13 
C) 10 
D) 0

Question 5

The second phase (1989-1993)of the IASC's efforts to harmonize accounting standards was aimed at what goal?

Accepted Answer

A) Making international accounting standards more flexible 
B) Creating greater financial statement comparability across countries 
C) Adding new alternatives for accounting practice desired by the international community 
D) Strengthening the enforcement power of the IASC 
A) Making international accounting standards more flexible 
B) Creating greater financial statement comparability across countries 
C) Adding new alternatives for accounting practice desired by the international community 
D) Strengthening the enforcement power of the IASC

Question 6

To create an appropriate mix of members of the IASB,by 2012 there will be:

Accepted Answer

A) 8 auditors. 
B) 8 academic representatives. 
C) 4 members of the FASB. 
D) a diverse geographical balance of members. 
A) 8 auditors. 
B) 8 academic representatives. 
C) 4 members of the FASB. 
D) a diverse geographical balance of members.

Question 7

In preparation for admission to the European Union,Hungary,Poland,and the Czech Republic passed new accounting laws based on EU Directives. How were these new laws different from their previous accounting laws?

Accepted Answer

A) The new laws are easier to enforce than the previous laws. 
B) The new accounting regulations are written in English,whereas the earlier accounting standards were written in Russian. 
C) The new laws are less flexible than their earlier accounting laws. 
D) The new laws are market-oriented and their earlier accounting laws were Soviet-style. 
A) The new laws are easier to enforce than the previous laws. 
B) The new accounting regulations are written in English,whereas the earlier accounting standards were written in Russian. 
C) The new laws are less flexible than their earlier accounting laws. 
D) The new laws are market-oriented and their earlier accounting laws were Soviet-style.

Question 8

Which of the following is NOT part of the due process followed by the IASB in formulating International Financial Reporting Standards?

Accepted Answer

A) A period of public comment is provided after discussion papers are prepared. 
B) Standards are approved by a unanimous vote of the 16-member board. 
C) Exposure drafts are published prior to taking a vote of the board. 
D) National accounting standards and practices are studied before preparing exposure drafts. 
A) A period of public comment is provided after discussion papers are prepared. 
B) Standards are approved by a unanimous vote of the 16-member board. 
C) Exposure drafts are published prior to taking a vote of the board. 
D) National accounting standards and practices are studied before preparing exposure drafts.

Question 9

Which of the following is NOT a way in which a country might adopt IFRS?

Accepted Answer

A) All companies in that country adopt IFRS. 
B) Foreign companies listed on domestic exchanges adopt IFRS. 
C) IASB forces them to adopt IFRS. 
D) Domestic companies that list on foreign exchanges adopt IFRS. 
A) All companies in that country adopt IFRS. 
B) Foreign companies listed on domestic exchanges adopt IFRS. 
C) IASB forces them to adopt IFRS. 
D) Domestic companies that list on foreign exchanges adopt IFRS.

Question 10

Which of the following statements is true about the IASB's approach to accounting standard setting?

Accepted Answer

A) The IASB approach is very similar to the rules-oriented basis favored by the FASB in the United States. 
B) The IASB uses a principles-based approach to standards formulation. 
C) The IASB pronouncements have been called a "cookbook" of accounting standards. 
D) The Sarbanes-Oxley Act requires the FASB to move toward the approach for standard setting used by the IASB. 
A) The IASB approach is very similar to the rules-oriented basis favored by the FASB in the United States. 
B) The IASB uses a principles-based approach to standards formulation. 
C) The IASB pronouncements have been called a "cookbook" of accounting standards. 
D) The Sarbanes-Oxley Act requires the FASB to move toward the approach for standard setting used by the IASB.

Question 11

What group is responsible for translating International Financial Reporting Standards into languages other than the official language of the IASB?

Accepted Answer

A) The International Accounting Standards Board 
B) The International Accounting Standards Committee Foundation 
C) The United Nations 
D) The national accountancy bodies of individual countries 
A) The International Accounting Standards Board 
B) The International Accounting Standards Committee Foundation 
C) The United Nations 
D) The national accountancy bodies of individual countries

Question 12

In addition to the International Accounting Standards Board (IASB),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 13

What was the "Norwalk Agreement?"

Accepted Answer

A) A pledge between the Financial Accounting Standards Board in the U.S.and the IASB to make their reporting standards compatible 
B) A concession by the Financial Accounting Standards Board in the U.S.to adopt IFRS as soon as possible 
C) It is a treaty between the United States and the European Union to make their accounting standards converge. 
D) It was an agreement signed in Norwalk,Connecticut in 2002 to make English the official language of the IASB. 
A) A pledge between the Financial Accounting Standards Board in the U.S.and the IASB to make their reporting standards compatible 
B) A concession by the Financial Accounting Standards Board in the U.S.to adopt IFRS as soon as possible 
C) It is a treaty between the United States and the European Union to make their accounting standards converge. 
D) It was an agreement signed in Norwalk,Connecticut in 2002 to make English the official language of the IASB.

Question 14

Czech Republic,Estonia,Hungary,Latvia,Lithuania,Poland,Slovakia,and Slovenia joined the European Union in 2004. Besides membership in the EU,what do these countries have in common?

Accepted Answer

A) They share a common language. 
B) They were previously under the political and economic influence of the Soviet Union. 
C) All were under the political control of Germany until the early 1960's. 
D) They were former British colonies until after World War II. 
A) They share a common language. 
B) They were previously under the political and economic influence of the Soviet Union. 
C) All were under the political control of Germany until the early 1960's. 
D) They were former British colonies until after World War II.

Question 15

According to the Framework for Preparation and Presentation of Financial Statements of the IASB,what is the definition of income?

Accepted Answer

A) Assets minus liabilities 
B) Revenue minus expenses 
C) Increase in equity (other than from contributions by owners) 
D) Inflow of resources with future economic benefit 
A) Assets minus liabilities 
B) Revenue minus expenses 
C) Increase in equity (other than from contributions by owners) 
D) Inflow of resources with future economic benefit

Question 16

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 17

The IASB is organized under an independent entity called:

Accepted Answer

A) the SEC. 
B) the AFL. 
C) the IFRSF. 
D) INTERPOL. 
A) the SEC. 
B) the AFL. 
C) the IFRSF. 
D) INTERPOL.

Question 18

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

Accepted Answer

A) There is a strong reliance on professional judgment. 
B) There is agreement on the interpretation of the principle of fair presentation. 
C) There is a stronger emphasis on substance of reports rather than the form of reports 
D) Audits report on the adherence to the principle of fair presentation. 
A) There is a strong reliance on professional judgment. 
B) There is agreement on the interpretation of the principle of fair presentation. 
C) There is a stronger emphasis on substance of reports rather than the form of reports 
D) Audits report on the adherence to the principle of fair presentation.

Question 19

In which of the following countries is the use of IFRS not allowed for domestic companies listed on its stock exchanges?

Accepted Answer

A) United Kingdom 
B) Yugoslavia 
C) Australia 
D) United States 
A) United Kingdom 
B) Yugoslavia 
C) Australia 
D) United States

Question 20

What was the 2002 finding by the six largest public accounting firms regarding International Financial Reporting Standards?

Accepted Answer

A) Of the countries surveyed,almost all planned to make their GAAP converge with IFRS. 
B) Very few of the countries studied planned to move their national accounting standards toward convergence with IFRS. 
C) There were almost as many convergence strategies as there were countries in the study. 
D) The countries that planned to make their GAAP converge with IFRS were predominantly western European nations. 
A) Of the countries surveyed,almost all planned to make their GAAP converge with IFRS. 
B) Very few of the countries studied planned to move their national accounting standards toward convergence with IFRS. 
C) There were almost as many convergence strategies as there were countries in the study. 
D) The countries that planned to make their GAAP converge with IFRS were predominantly western European nations.

According to Sir Bryan Carsberg,former IASC Secretary-General,what is the most significant cost of accounting diversity?

De facto harmonization refers to:

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

Of the 16 members of the International Accounting Standards Board (IASB),how many work for the board on a full-time basis?

The second phase (1989-1993)of the IASC's efforts to harmonize accounting standards was aimed at what goal?

To create an appropriate mix of members of the IASB,by 2012 there will be:

In preparation for admission to the European Union,Hungary,Poland,and the Czech Republic passed new accounting laws based on EU Directives. How were these new laws different from their previous accounting laws?

Which of the following is NOT part of the due process followed by the IASB in formulating International Financial Reporting Standards?

Which of the following is NOT a way in which a country might adopt IFRS?

Which of the following statements is true about the IASB's approach to accounting standard setting?

What group is responsible for translating International Financial Reporting Standards into languages other than the official language of the IASB?

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

What was the "Norwalk Agreement?"

Czech Republic,Estonia,Hungary,Latvia,Lithuania,Poland,Slovakia,and Slovenia joined the European Union in 2004. Besides membership in the EU,what do these countries have in common?

According to the Framework for Preparation and Presentation of Financial Statements of the IASB,what is the definition of income?

Which of the following statements is true about accounting convergence?

The IASB is organized under an independent entity called:

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

In which of the following countries is the use of IFRS not allowed for domestic companies listed on its stock exchanges?

What was the 2002 finding by the six largest public accounting firms regarding International Financial Reporting Standards?

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

According to Sir Bryan Carsberg,former IASC Secretary-General,what is the most significant cost of accounting diversity?

De facto harmonization refers to:

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

Of the 16 members of the International Accounting Standards Board (IASB),how many work for the board on a full-time basis?

The second phase (1989-1993)of the IASC's efforts to harmonize accounting standards was aimed at what goal?

To create an appropriate mix of members of the IASB,by 2012 there will be:

In preparation for admission to the European Union,Hungary,Poland,and the Czech Republic passed new accounting laws based on EU Directives. How were these new laws different from their previous accounting laws?

Which of the following is NOT part of the due process followed by the IASB in formulating International Financial Reporting Standards?

Which of the following is NOT a way in which a country might adopt IFRS?

Which of the following statements is true about the IASB's approach to accounting standard setting?

What group is responsible for translating International Financial Reporting Standards into languages other than the official language of the IASB?

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

What was the "Norwalk Agreement?"

Czech Republic,Estonia,Hungary,Latvia,Lithuania,Poland,Slovakia,and Slovenia joined the European Union in 2004. Besides membership in the EU,what do these countries have in common?

According to the Framework for Preparation and Presentation of Financial Statements of the IASB,what is the definition of income?

Which of the following statements is true about accounting convergence?

The IASB is organized under an independent entity called:

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

In which of the following countries is the use of IFRS not allowed for domestic companies listed on its stock exchanges?

What was the 2002 finding by the six largest public accounting firms regarding International Financial Reporting Standards?

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