Quiz 1

Which of the following is NOT the purpose of the IASB’s Conceptual Framework?

• To be authoritative where a specific IFRS conflicts with the Conceptual Framework

• To assist in determining the treatment of items not covered by an existing IFRS

• To assist auditors in forming an opinion on whether financial statements comply with IFRS

• To assist the IASB in the preparation and review of IFRS

Under the current structure of regulatory bodies, which of the bodies listed below acts as the overall supervisory body?

• IFRS Interpretations Committee

• International Accounting Standards Board

• IFRS Advisory Council

• IFRS Foundation

Which of the bodies listed below is responsible for the approval of Draft Interpretations?

• IFRS Interpretations Committee

• International Accounting Standards Board

• IFRS Advisory Council

• IFRS Foundation

Which of the following best describes the role of the IFRS Advisory Council?

• To prepare interpretations of IFRS Standards

• To provide the Board with the views of its members on standard-setting projects

• To promote the use of IFRS Standards amongst its members

• To select the members of the Board

The two main approaches to accounting are ________________

According to the IASB Conceptual Framework, the objective of financial reporting is to?

• Satisfy legal requirements

• Provide financial information that is useful to users

• Comply with generally accepted accounting principles (GAAP)

• Disclose all material information relevant to stakeholders

Under the Conceptual Framework for Financial Reporting, which of the following is the ‘threshold quality’ of useful information?

• Relevance

• Materiality

• Reliability

• Understandability

According to The Conceptual Framework for Financial Reporting, which of the following is the underlying assumption of a set of financial statements?

• Going Concern

• Prudence

• Relevance

• Comparability

The Board's Framework identifies qualitative characteristics.

(i) Relevance

(ii) Comparability

(iii) Verifiability

(iv) Understandability

(v) Faithful representation

Which of the above are not listed as enhancing characteristics?

• (ii) and (iii)

• (i), (iv) and (v)

• (i) and (v)

• (ii), (iii) and (iv)

Information that has ________ is said to have relevance.

• Neutrality

• Materiality

• Verifiability

• Confirmatory value