3. The full-IRFS text has been redrafted into “plain English”
Which of the following is a correct list of simplifications?
a. 1, 2, and 3.
b. 1 and 2 only.
c. 2 and 3 only.
d. 1 and 3 only.
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
61. Which of the following organizations is not among the four international standard-setting
organizations?
a. IFRS Foundation.
b. IASB.
c. Advisory Council.
d. International Organization of Securities Commissions (IOSCO).
Ans: d
LO:1.3
Bloom: K
Difficulty: Easy
Min: 2-4
AACSB: Analytic
Financial Reporting and Accounting Standards
1 - 25
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
62. The International Accounting Standards Board (IASB) follows specific steps in developing
International Financial Reporting Standards (IFRS). Place the following steps in the correct
order:
1) Research and analysis conducted; preliminary views of pros and cons
issued.
2) Topics identified and placed on the agenda.
3) Board evaluates responses, final standard issued.
4) Public hearing on proposed standard
5) Board evaluates research, issues exposure draft.
a. 1, 2, 3, 4, 5
b. 2, 1, 4, 5, 3
c. 1, 2, 5, 4, 3
d. 1, 2, 5, 3, 4
Ans: b
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
63. Which of the following is true with regard to the characteristics of the International
Accounting Standards Board (IASB)?
a. A unanimous vote by all Board members is needed to issue a new International
Financial Reporting Standard (IFRS).
b. The IASB consists of 13 part-time members.
c. Each member of the IASB must come from a different country.
d. IASB members are appointed for 5-year renewable terms.
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
test bank for Intermediate Accounting: IFRS Edition,4e
1 - 26
64. International Financial Reporting Standards Interpretations (issued by the IFRS
Interpretations Committee)
a. Are considered authoritative and must be followed.
b. Cover newly identified financial reporting issues not specifically addressed by the
IASB.
c. Cover issues where unsatisfactory or conflicting interpretations have developed.
d. All of the choices are correct regarding International financial reporting interpretations.
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
65. Which of the following statements is true regarding the International Accounting Standards
Board (IASB)?
a. The IASB is a regulatory agency with enforcement powers for its International
Financial Reporting Standards (IFRS).
b. The IASB is a public organization, funded by taxpayer dollars from member countries.
c. It is comprised of 14 full-time members.
d. All of the choices are correct regarding the IASB.
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
66. Which of the following is not one of the major types of pronouncements issued by the
International Accounting Standards Board (IASB)?
a. International financial reporting standards.
b. Memorandum of understanding.
c. Conceptual framework for financial reporting.
d. International financial reporting standards interpretations.
Ans: b
LO:1.3
Bloom: K
Difficulty: Easy
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
Financial Reporting and Accounting Standards
1 - 27
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
67. Which of the following has the highest authoritative support?
a. International Financial Reporting Standards.
b. International Accounting Standards.
c. Interpretations issued by the IFRS Interpretations Committee.
d. Conceptual Framework for Financial Reporting.
Ans: a
LO:1.3
Bloom: C
Difficulty: Medium