Question 1

AASB 1048 Interpretation and Application of Standards contains the:

Accepted Answer

A) IFRS interpretations approved by the AASB. 
B) UIG interpretations approved by the IASB. 
C) IFRS interpretations approved by the IASB. 
D) UIG interpretations approved by the AASB. 
A) IFRS interpretations approved by the AASB. 
B) UIG interpretations approved by the IASB. 
C) IFRS interpretations approved by the IASB. 
D) UIG interpretations approved by the AASB.

Question 2

In terms of the numbering of AASB accounting standards:

Accepted Answer

A) AASB 1-99 are the AASB equivalent of the IFRSs issued by the IASB. 
B) AASB 101-199 are the AASB equivalent of the IFRSs issued by the IASB. 
C) AASB 1-99 address domestic issues such as director and executive disclosures and concise financial reports. 
D) AASB 101-199 address domestic issues such as director and executive disclosures and concise financial reports. 
A) AASB 1-99 are the AASB equivalent of the IFRSs issued by the IASB. 
B) AASB 101-199 are the AASB equivalent of the IFRSs issued by the IASB. 
C) AASB 1-99 address domestic issues such as director and executive disclosures and concise financial reports. 
D) AASB 101-199 address domestic issues such as director and executive disclosures and concise financial reports.

Question 3

The IFRS Interpretations Committee is a subcommittee of the:

Accepted Answer

A) Standing Interpretations Committee. 
B) Australian Accounting Standards Board. 
C) International Accounting Standards Board. 
D) Financial Reporting Committee. 
A) Standing Interpretations Committee. 
B) Australian Accounting Standards Board. 
C) International Accounting Standards Board. 
D) Financial Reporting Committee.

Question 4

In Australia,the Corporations Act 2001 is administered by the:

Accepted Answer

A) Australian Securities Exchange. 
B) Australian Accounting Research Foundation. 
C) Australian Securities and Investments Commission. 
D) Securities and Exchange Commission. 
A) Australian Securities Exchange. 
B) Australian Accounting Research Foundation. 
C) Australian Securities and Investments Commission. 
D) Securities and Exchange Commission.

Question 5

The aim of the proposals in the Corporate Law Economic Reform Program (CLERP)first discussion paper was to provide a standard-setting process which would be beneficial for Australian business operating in a global environment and which would be economically efficient.

Accepted Answer

A) True 
 B)False

Question 6

People cannot be appointed as members of the AASB unless:

Accepted Answer

A) they are a member of one of the accounting professional bodies. 
B) they are a registered company auditor. 
C) their knowledge and experience in business,accounting,law or government qualifies them for appointment. 
D) they have experience as a company director. 
A) they are a member of one of the accounting professional bodies. 
B) they are a registered company auditor. 
C) their knowledge and experience in business,accounting,law or government qualifies them for appointment. 
D) they have experience as a company director.

Question 7

The functions of the Australian Accounting Standards Board include:
I.development of a conceptual framework for the purpose of evaluating proposed accounting standards.
II.making accounting standards for the purpose of the Corporations Act.
III.participating in and contributing to the development of a single set of accounting standards for worldwide use.

Accepted Answer

A) I only. 
B) II and III only. 
C) I and III only. 
D) I,II and III. 
A) I only. 
B) II and III only. 
C) I and III only. 
D) I,II and III.

Question 8

A key role of the Australian Securities and Investments Commission (ASIC)is to ensure that all company financial statements lodged with it:

Accepted Answer

A) do not contain any fraud. 
B) are approved by the Financial Reporting Council. 
C) comply with the ASX Listing Rules. 
D) comply with the Corporations Act,including accounting standards. 
A) do not contain any fraud. 
B) are approved by the Financial Reporting Council. 
C) comply with the ASX Listing Rules. 
D) comply with the Corporations Act,including accounting standards.

Question 9

The main role of the trustee for debenture holders is to protect the interests of:

Accepted Answer

A) suppliers. 
B) debenture holders. 
C) directors. 
D) employees. 
A) suppliers. 
B) debenture holders. 
C) directors. 
D) employees.

Question 10

Prior to 1988 the role of the Accounting Standards Review Board (ASRB)was to formulate and issue accounting standards.

Accepted Answer

A) True 
 B)False

Question 11

From March 2010,the principal objectives of the International Accounting Standards Board (IASB)include promoting the use and rigorous application of IFRSs and to bring about convergence of national accounting standards and IFRSs.

Accepted Answer

A) True 
 B)False

Question 12

All offers by a company to issue shares or debentures must be accompanied by a disclosure document.

Accepted Answer

A) True 
 B)False

Question 13

All company registers must be kept at the registered office of the company.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is not correct?

Accepted Answer

A) Requirements for special purpose financial reports are contained in AASB accounting standards. 
B) The IASB's Conceptual Framework identifies potential investors as a primary user group of general purpose financial reports. 
C) All general purpose financial reports are prepared in accordance with accounting standards. 
D) SAC 1 Definition of the Reporting Entity defines a general purpose financial report as 'a report intended to meet the information needs of users who are unable to command the preparation of reports tailored to satisfy their information needs'. 
A) Requirements for special purpose financial reports are contained in AASB accounting standards. 
B) The IASB's Conceptual Framework identifies potential investors as a primary user group of general purpose financial reports. 
C) All general purpose financial reports are prepared in accordance with accounting standards. 
D) SAC 1 Definition of the Reporting Entity defines a general purpose financial report as 'a report intended to meet the information needs of users who are unable to command the preparation of reports tailored to satisfy their information needs'.

Question 15

Small proprietary companies must prepare audited accounts if requested by ASIC.

Accepted Answer

A) True 
 B)False

Question 16

The replaceable rules built into the Corporations Act deal with which of the following?

Accepted Answer

A) Appointment,powers,remuneration and termination of directors. 
B) Meetings between the external auditors and the company's audit committee. 
C) Remuneration of the external auditors. 
D) Annual dividend payments to members. 
A) Appointment,powers,remuneration and termination of directors. 
B) Meetings between the external auditors and the company's audit committee. 
C) Remuneration of the external auditors. 
D) Annual dividend payments to members.

Question 17

The Australian Securities and Investments Commission (ASIC)is responsible for monitoring and promoting market integrity and consumer protection in relation to the Australian financial system.

Accepted Answer

A) True 
 B)False

Question 18

The certificate of registration issued by the Australian Securities and Investments Commission is valid:

Accepted Answer

A) for 12 months only and must be renewed annually. 
B) for a maximum period of 5 years. 
C) for 15 years. 
D) until the company is deregistered. 
A) for 12 months only and must be renewed annually. 
B) for a maximum period of 5 years. 
C) for 15 years. 
D) until the company is deregistered.

Question 19

The main functions of the Financial Reporting Council include:
I.appointing members of the AASB and AUASB.
II.determining the AASB's broad strategic direction.
III.establishing appropriate consultative mechanisms.
IV.directing the AASB in relation to the development or making of a particular standard.
V.the power to veto a standard recommended by the AASB.

Accepted Answer

A) I,II,III and V only. 
B) I,II and III only. 
C) I,II,IV and V only. 
D) II,III,IV and V only. 
A) I,II,III and V only. 
B) I,II and III only. 
C) I,II,IV and V only. 
D) II,III,IV and V only.

Question 20

The Australian Securities Exchange (ASX)played a major role in influencing the Australian Government to push the AASB towards the adoption of IASB standards.

Accepted Answer

A) True 
 B)False

Exam 1: Nature and Regulation of Companies

AASB 1048 Interpretation and Application of Standards contains the:

In terms of the numbering of AASB accounting standards:

The IFRS Interpretations Committee is a subcommittee of the:

In Australia,the Corporations Act 2001 is administered by the:

The aim of the proposals in the Corporate Law Economic Reform Program (CLERP)first discussion paper was to provide a standard-setting process which would be beneficial for Australian business operating in a global environment and which would be economically efficient.

People cannot be appointed as members of the AASB unless:

A key role of the Australian Securities and Investments Commission (ASIC)is to ensure that all company financial statements lodged with it:

The main role of the trustee for debenture holders is to protect the interests of:

Prior to 1988 the role of the Accounting Standards Review Board (ASRB)was to formulate and issue accounting standards.

From March 2010,the principal objectives of the International Accounting Standards Board (IASB)include promoting the use and rigorous application of IFRSs and to bring about convergence of national accounting standards and IFRSs.

All offers by a company to issue shares or debentures must be accompanied by a disclosure document.

All company registers must be kept at the registered office of the company.

Which of the following statements is not correct?

Small proprietary companies must prepare audited accounts if requested by ASIC.

The replaceable rules built into the Corporations Act deal with which of the following?

The Australian Securities and Investments Commission (ASIC)is responsible for monitoring and promoting market integrity and consumer protection in relation to the Australian financial system.

The certificate of registration issued by the Australian Securities and Investments Commission is valid:

The Australian Securities Exchange (ASX)played a major role in influencing the Australian Government to push the AASB towards the adoption of IASB standards.

Financing Company Operations

Company Operations

Fundamental Concepts of Corporate Governance

Fair Value Measurement

Accounting for Company Income Tax

Financial Instruments

Foreign Currency Transactions and Forward Exchange Contracts

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Presentation of Financial Statements

Disclosure: Statement of Cash Flows

Disclosure: Translation of Financial Statements Into a Presentation Currency

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Investments in Joint Arrangements

Insolvency and Liquidation

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