By admin22nd November 2019 Welcome to your FR Regulation Quiz Name Email 1. The International Accounting Standards Board’s (IASB) Framework for the Preparation and Presentation of Financial Statements (Framework) is the IASB’s conceptual framework. Which one of the following does the Framework not cover? The format of financial statements The objective of financial statements Concepts of capital maintenance The elements of financial statements 2. Generally accepted accounting practice (GAAP) in a country can be based on legislation and accounting standards that are either:• very prescriptive in nature; or• principle-based Required:Explain the possible advantages of having principle-based accounting standards as opposed to prescriptive standards. 3. List TWO functions of the IFRS Advisory Council. 4. Identify the four main entities that are involved in developing and implementing International Accounting Standards. Briefly describe the role of each entity. Hint 5. Which ONE of the following is a function of the IFRS Foundation? Complete responsibility for the preparation and publication of International Financial Reporting Standards (IFRSs). Approving annually the budget and determining the funding of the International Accounting Standards Board (IASB). To inform the IASB of the views of organisations and individuals on major standard setting projects To review new financial reporting issues not yet covered by an IFRS. 6. The IASB Framework identifies several different user groups of financial statements.List FOUR user groups identified by the Framework. 7. Which ONE of the following is NOT a topic included in the International Accounting Standards Board’s (IASB) Framework for the Preparation and Presentation of Financial Statements (Framework)? The objective of financial statements Concepts of capital maintenance Regulatory bodies governing financial statements Measurement of the elements of financial statements 8. Explain the roles of the following in relation to International Financial Reporting Standards.• The IFRS Interpretations Committee• The IFRS Advisory Council Hint 9. Explain the steps in the IASB’s standard setting process that most IFRSs go through during development. Hint 10. The IASB®’s Conceptual Framework for Financial Reporting lists two fundamental qualitative characteristics of financial statements, one of which is faithful representation.Which of the following is NOT a characteristic of faithful representation? Completeness Neutrality Free from error Prudence 11. The International Accounting Standards Board’s (The Board’s) The Conceptual Framework for Financial Reporting is the Board’s conceptual framework. Which of the following does the Framework NOT cover? The format of financial statements The objective of financial statements Concepts of capital maintenance The elements of financial statements 12. Which of the following are advantages of applying a principles‐based framework of accounting rather than a rules‐based framework?(i) It avoids ‘fire‐fighting’, where standards are developed in response to specificproblems as they arise(ii) It allows preparers and auditors to deal with complex transactions which may not be specifically covered by an accounting standard(iii) Principles‐based standards are thought to be harder to circumvent(iv) A set of rules is given which attempts to cover every eventuality(v) Accounting standards can be developed in relation to agreed principles All of the above (i), (iii) and (v) only (i), (ii) and (v) only (i), (ii), (iii) and (v) only 13. One of your friends has recently decided to invest in some quoted securities. He is, however, concerned that the companies in which he is interested may have inflated their share prices by publishing misleading financial statements. He is aware that the accountancy profession has established an international standard setting body, but has read that this organisation is subject to a number of influences. Required: Explain how the International Accounting Standards Board goes about setting an International Financial Reporting Standard. Explain how the process could be influenced by the preparers of financial statements.