Ans: c
LO:1.2
test bank for Intermediate Accounting: IFRS Edition,4e
1 - 20
Bloom: K
Difficulty: Easy
Min: 2-4
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 - 21
53. What is due process in the context of standard setting at the IASB?
a. IASB operates in full view of the public.
b. Public hearings are held on proposed accounting standards.
c. Interested parties can make their views known.
d. All of these answers are correct.
Ans: d
LO:1.3
Bloom: K
Difficulty: Easy
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
54. Which of the following correctly depicts the order of steps in the IASB’s due process?
a. Research and analysis conducted, topic placed on Board’s agenda, exposure draft
b. Topic placed on Board’s agenda, exposure draft, public hearing on proposed standard
c. Topic placed on Board’s agenda, public hearing on proposed standard, exposure draft
d. Research and analysis conducted, exposure draft, public hearing on proposed standard
Ans: c
LO:1.3
Bloom: C
Difficulty: Medium
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
55. The IASB's standard-setting structure includes all of the following except:
a. IFRS Interpretations Committee
b. IFRS Advisory Council
c. IFRS Comparison Committee
d. Trustees
Ans: c
LO:1.3
Bloom: K
Difficulty: Easy
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
P 56.
A company using IFRS to prepare its financial statements will use a hierarchy to determine
what recognition, valuation, and disclosure requirements should be used.
test bank for Intermediate Accounting: IFRS Edition,4e
1 - 22
1. IFRS, IAS, IFRS Interpretations
2. Pronouncements of other standard-setting bodies
3. The Conceptual Framework for Financial Reporting
Which of the following depicts the correct order of the hierarchy?
a. 1, 2, 3.
b. 3, 2, 1.
c. 2, 3, 1.
d. 1, 3. 2.
Ans: d
LO:1.3
Bloom: C
Difficulty: Medium
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
57. The purpose of the International Accounting Standards Board is to
a. issue enforceable standards which regulate the financial accounting and reporting of
multinational corporations.
b. develop a uniform currency in which the financial transactions of companies through-
out the world would be measured.
c. develop a single set of high-quality IFRS.
d. arbitrate accounting disputes between auditors and international companies.
Ans: c
LO:1.3
Bloom: K
Difficulty: Easy
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
58. In the past, many countries have relied on their own standard-setting organizations. The
standards issued by these various standard-setting organizations around the world include
a. Tax-oriented standards.
b. Business-based standards.
c. Principles-based standards.
d. All of these answers are correct.
Ans: d
LO:1.3
Bloom: K
Difficulty: Easy
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
Financial Reporting and Accounting Standards
1 - 23
AICPA PC: Problem Solving and Decision-making
IMA: None
test bank for Intermediate Accounting: IFRS Edition,4e
1 - 24
59. The International Organization of Securities Commissions (IOSCO)
a. is an association of organizations that regulate the world’s securities markets.
b. does not set accounting standards.
c. supports the development and use of IFRS.
d. All of these answer choices are correct.
Ans: d
LO:1.3
Bloom: C
Difficulty: Medium
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
60. IFRS for SMEs reflects some simplifications from full IFRS.
1. Substantially more disclosures are required
2. Some full IFRS topics are omitted because they are not relevant to SMEs