Chapter 2 : The Regulatory Framework

What is the role of the IFRS Interpretations Committee?

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

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

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

• 
  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)?

• 
  International Accounting Standards Board (IASB)

• IFRS Advisory Council

• 
  IFRS Interpretations Committee

• IFRS Foundation

Which of the following statements is/are true?

1) The IFRS Interpretations Committee is a forum for the International Accounting Standards Board (IASB) to consult with the outside world.

1. 2) The IFRS Foundation produces IFRSs. The IFRS Foundation is overseen by the IASB.

2. 3) One of the objectives of the IFRS Foundation is to bring about convergence of national accounting standards and IFRSs.

• 3 only

• 2 and 3 only

• 1 and 3 only

• 2 only

Which of the following is NOT an objective of the IFRS Foundation?

• 
  Promote the use and rigorous application of International Financial Reporting Standards (IFRSs)

• Bring about the convergence of national accounting standards and IFRSs

• 
  Through the International Accounting Standards Board (IASB), develop a single set of globally accepted International Financial Reporting Standards (IFRSs)

• 
  Ensure IFRSs focus primarily on the needs of global, multi-national organisations

Which of the following statements correctly describes how International Financial Reporting Standards (IFRSs) should be used?

• To ensure high ethical standards are maintained by financial reporting professionals internationally

• 
  To prevent national bodies from developing their own financial reporting standards

• 
  To provide examples of best financial reporting practice for national bodies who develop their own requirements

• To facilitate the enforcement of a single set of global financial reporting standards

Which ONE of the following international accounting regulatory bodies takes account of the needs of emerging economies and small to medium-sized entities?

• IFRS Foundation

• IASB

• IFRS Advisory Council

• IFRS Interpretation Committee

Which activity would happen immediately prior to the issue of an IFRS to check that the standard is workable and of appropriate quality?

• 1. Release of a discussion paper to encourage debate about the accounting issue

• 1. IFRS Interpretations Committee would promote its usage

• 1. It would be trialled in the UK and comments invited

• 1. An exposure draft would be released inviting readers to comment

A new international financial reporting standard has just been released.

Which of the following accounting regulatory bodies is responsible for providing guidance on disclosure requirements where there is uncertainty in the original standard?

• IFRS Foundation

• IFRS Interpretations Committee

• IASB

• IFRS advisory council

Which ONE of the following describes a role of the International Accounting Standards Board (IASB)

• 1. Provide guidance on issues not addressed in International Financial Reporting Standards (IFRSs)

• Develop and publish International Financial Reporting Standards (IFRSs)

• Advise national standard setters and governments on financial reporting standards

• Provide guidance on issues that have arisen from implementation of International Financial Reporting Standards (IFRSs)

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

• 1. International Financial Reporting Standards Foundation

• 1. International Financial Reporting Standards Interpretations Committee

• 1. International Accounting Standards Board

• 1. IFRS Advisory Council