The regulatory framework

Which body has sole responsibility and authority to issue an International Financial Reporting Standard?

• the International Financial Reporting Standards Foundation

• the International Financial Reporting Standards Interpretations Committee

• the International Accounting Standards Board

• the IFRS Advisory Council

Which body provides guidance on financial reporting issues that are no specifically address in IFRS?

• the International Financial Reporting Standards Foundation

• the International Financial Reporting Standards Interpretations Committee

• the International Accounting Standards Board

• the IFRS Advisory Council

What is the objective of the International Accounting Standards Board?

• To harmonise International Financial Reporting Standards with national accounting standards

• To create accounting standards which meet the needs of emerging economies

• To develop, in the public interest, a single set of high quality, understandable global accounting standards

• To provide a form for participation by other interested parties that require transparent and comparable information

Which one of the following is the responsibility of an audit committee?

• To monitor the integrity of the financial statements

• To present a balanced and understandable assessment of the company's position

• To maintain a sound system of internal control (including risk management)

• To ensure that adequate accounting records are kept for the preparation of financial statements

The board of directors is collectively responsible for ensuring that:

i. financial statements are prepared in accordance with local GAAP

ii. adequate accounting records are kept;

iii. financial statements are filed according to law.

Which of these responsibilities can be delegated to the finance director?

• i and ii only

• i and iii only

• ii and iii only

• i, ii and iii

Who is responsible for the preparation of the financial statements of a company?

i. The finance department

ii. The board of directors

iii. The external auditors

• i only

• i and ii only

• ii only

• i, ii and iii

What should be the main aim for a director of a company?

• To manage the affairs of the company in order to earn a good bonus

• To manage the affairs of the company in order to create wealth for the shareholder

• To manage the affairs of the company in order to generate the largest profits in the shortest time

• To manage the affairs of the company in order to contribute to the general wellbeing of society

What is the role of the IFRS Interpretations Committee?

• To develop and issue a set of globally accepted International Financial Reporting Standards

• To clarify issues in the application of IFRSs where nsatisfactory or conflicting interpretations have developed

• To take account of the financial reporting needs of small and medium-sized entities

• To provide a forum for the IASB to consult with the national accounting standard setters, academics and other interested parties

Which of the following is responsible for developing and issuing International Financial Reporting Standards (IFRSs)?

• IFRS Foundation

• IFRS Interpretations Committee

• International Accounting Standards Board (IASB)

• IFRS Advisory Council

Which of the following items is the IFRS Advisory Council is responsible for?

i. To give advice to the IASB or to the trustees.

ii. To give advice to the IASB on agenda decisions.

• i and ii

• i only

• ii only

• Neither i nor ii