KISI KISI AKM 1

GAAP (for U.S. companies) stands for:

• Government accepted accounting practices

• Generally accepted auditing policies

• Generally accepted accounting principles

• Gevernment approved accounting principles

Oversight of accounting standard-setting is as follows

• IASB oversees FASB

• IOSCO oversees both the IASB and FASB

• SEC oversees both the IASB and FASB

• SEC oversees FASB, IOSCO oversees IASB

Governance of the FASB involves

• FASB, FAF, FASAC, and IOSCO

• FASB, FAF, FASAC, and staff and task forces

• FASB, FAF, IASB, and task forces

• FASB, FAF, IASB, and the SEC

Which of the following statements is false?

• FASB is a government office within the SEC

• The FASB and IASB have similar governance structures

• U.S. GAAP is generally viewed as more detailed or rules-based; IFRS is viewed as more principles-based

• The SEC oversees FASB standard-setting

Which of the following statements is true?

• The IASB does not include the public interest in its governance

• The IASB structure has both advisory and interpretation functions,but no Foundation

• The IASB has been in existence longer than the FASB

• The IASB structure is quite similar to the FASB’s, with a Foundation, Board, Advisory Council, and Interpretations Committee

Which of the following statements about the IASB and FASB conceptual frameworks is not correct?

• The IASB conceptual framework does not identify the element comprehensie income

• The existing IASB and FASB conceptual frameworks are organized in similar ways

• The FASB and IASB agree that the objective of financial reporting is to provide useful information to investors and creditors

• IFRS does not allow use of fair value as a measurement basis

Which of the following statements is false?

• The monetary unit assumption is used under U.S. GAAP

• Under IFRS, companies may use fair value for property, plant, and equipment

• The FASB and IASB are no longer working on a joint conceptual framework project

• Under IFRS, there are the same number of financial statement elements as in U.S. GAAP

Companies that use U.S. GAAP

• must report all their assets on the balance sheet (statement of financial position) at fair value.

• may report property, plant, and equipment and natural resources at fair value

• are guided by a concept statement on estimating fair values when market data are not available

• may only use historical cost as the measurement basis in financial reporting

The issues that the FASB must still address in developing its updated conceptual framework include all of the following except

• whether the characteristic of relevance should be traded off in favor of information that is verifiable

• the qualitative characteristics of useful information

• the objective of financial reporting

• the asset and liability definitions

With respect to the FASB/IASB conceptual framework projects

• work is being conducted together on each part of the project

• work is being conducted with other national standard-setters

• there was never a plan to develop a common conceptual framework

• the IASB has worked at a faster pace than the FASB