Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
test bank for Intermediate Accounting: IFRS Edition,4e
1 - 6
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
13. The overriding requirement of IFRS is that financial statements provide an error-free and
comprehensive presentation of a company’s financial position.
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
14. The IFRS Foundation appoints members, reviews effectiveness, and helps in the fundraising
efforts of the IASB, IFRS Advisory Council, and IFRS Interpretations Committee.
Ans: T
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
15. International Accounting Standards are no longer considered applicable because they have
been replaced by International Financial Reporting Standards.
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
16. The IASB has a regulatory mandate that is enforced by the European Union member
countries.
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
Financial Reporting and Accounting Standards
1 - 7
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
test bank for Intermediate Accounting: IFRS Edition,4e
1 - 8
17. The two major standard-setting organizations in the world are the International Accounting
Standards Board (IASB) and International Organization of Securities Commission (IOSCO).
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
18. Under IFRS, the information reported by SMEs focuses on the needs of lenders and
creditors.
Ans: T
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
19. The International Organization of Securities Commissions (IOSCO) sets accounting standards
for those countries which have not yet adopted IFRS.
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
20. The International Accounting Standards Board (IASB) follows specific steps in developing
International Financial Reporting Standards (IFRS); the first step in the process is holding a
public hearing.
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
Financial Reporting and Accounting Standards
1 - 9
21. A unanimous vote by all Board members is needed to issue a new International Financial
Reporting Standard (IFRS).
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
22. The International Accounting Standards Board (IASB) is comprised of 14 volunteer members
and each member of the IASB must come from a different country.
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
23. Interpretations issued by the IFRS Interpretations Committee are more authoritative than
IASB Standards.
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
24. The International Accounting Standards Board (IASB) is a regulatory agency with
enforcement powers for its International Financial Reporting Standards (IFRS).
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic