AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
test bank for Intermediate Accounting: IFRS Edition,4e
1 - 10
25. International Financial Reporting Standards Interpretations (issued by the IFRS
Interpretations Committee) are considered authoritative and must be followed.
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
26. Financial reports in the early 21st century were generally prepared to be forward-looking and
were provided real-time.
Ans: F
LO: 1.4
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
27. Accounting standards are now less likely to require the recording or disclosure of fair value
information due to its inherent subjectivity.
Ans: F
LO: 1.4
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
28. IFRS are a product of careful logic or empirical findings and are not influenced by political
action.
Ans: F
LO: 1.4
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 - 11
29. The expectations gap is caused by what the public thinks accountants should be doing and
what accountants think they can do.
Ans: T
LO: 1.4
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
30. Ethical issues in financial accounting can be eliminated by adhering to IFRS.
Ans: F
LO: 1.4
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
31. Politics and political pressure in establishing IFRS is a negative force.
Ans: F
LO: 1.4
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
32. One of the significant financial reporting issues facing global financial reporting and efficient
capital allocation is how to provide forward-looking information.
Ans: T
LO: 1.4
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
test bank for Intermediate Accounting: IFRS Edition,4e
1 - 12
33. The IASB relies primarily on the International Organization of Securities Commissions
(IOSCO) for regulation and enforcement of its standards.
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
34. U.S. and European regulators have agreed to recognize each other’s standards for listing on
the various world securities exchanges.
Ans: T
LO: 1.4
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
35. IFRS tends to be simpler and more flexible in the accounting and disclosure requirements
than U.S. GAAP.
Ans: T
LO: 1.4
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
True-False Answers— Conceptual
Item Ans. Item Ans. Item Ans. Item Ans. Item Ans.
1. T 8. F 15. F 22. F 29. T
2. T 9. F 16. F 23. F 30. F
3. F 10. F 17. F 24. F 31. F
4. F 11. F 18. T 25. T 32. T
5. T 12. F 19. F 26. F 33. T
6. T 13. F 20. F 27. F 34. T