An Overview Of The International External Reporting Environment

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An Overview of the International External Reporting Environment
The Conceptual Framework of Accounting and Its Relevance to Financial Reporting
Theories of Financial Accounting
An Overview of Accounting for Assets
Depreciation of Property, Plant and Equipment
Revaluations and Impairment Testing of Non-Current Assets
Inventory
Accounting for Intangibles
An Overview of Accounting for Liabilities
Accounting for Leases
Share Capital, Reserves and Share Options Employee Bonus Schemes
Accounting for Financial Instruments
Revenue Recognition Issues
The Statement of Comprehensive Income and Statement of Changes in Equity
Accounting for Income Taxes
The Statement of Cash Flows
Events Occurring After the Reporting Date
Related-Party Disclosures
Earnings Per Share
Further Consolidation Issues I: Accounting for Intragroup Transactions
Further Consolidation Issues II: Accounting for Non-Controlling Interests
Further Consolidation Issues III: Accounting for Indirect Ownership Interest
Accounting for Foreign Currency Transactions
Translating the Financial Statements of Foreign Operations
Accounting for Corporate Social Responsibility

All Questions

Question 1

Free

True/False

Financial accounting can be considered a process involving the collection and processing of financial information to assist the decision-making needs of parties internal to an organisation.

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True

False

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Question 2

Free

True/False

The regulation of accounting can be argued to be necessary to protect the information rights of parties not involved in the day-to-day operations of the organisation.

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True

False

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Question 3

Free

True/False

The financial statements and supporting notes included in an annual report presented to shareholders at a company's annual general meeting is an example of general-purpose financial statements.

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True

False

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Question 4

Free

True/False

There has been a trend by governments and government departments towards adopting specialised public-sector related standards.

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True

False

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Question 5

Free

True/False

Directors could elect not to comply with an accounting standard on the grounds that applying the particular accounting standard would cause the financial statements not to present a 'true and fair view'.

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True

False

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Question 6

True/False

The role of the Financial Reporting Council is to provide broad oversight of the process for setting International standards,including the authority to direct the IASB to develop,amend or revoke a particular standard.

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True

False

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Question 7

True/False

Accounting cannot be considered to be 'culture free' because the value systems of accountants may be expected to be related to and derived from the values of the society with special reference to work related values and,as such,impacts on accounting systems.

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True

False

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Question 8

True/False

Legislation is very specific about what must,and must not,be included in the Directors' Report that is attached to a company's financial statements.

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True

False

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Question 9

True/False

The main role of the IFRS Interpretations committee is to resolve disputes between FSA and companies concerning accounting treatments in their financial reports.

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True

False

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Question 10

True/False

Corporate governance is the framework of rules,relationships,systems and processes within and by which authority is exercised and controlled in corporations.

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True

False

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Question 11

True/False

Disclosing entities generally,are entities that have:
securities (including debentures)quoted on a recognized securities exchange; issued securities (including debentures)pursuant to a prospectus or a takeover scheme; and borrowing corporations.

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True

False

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Question 12

True/False

The Statements of Accounting Concepts within the Conceptual Framework are developed by the International Accounting Standards Board.

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True

False

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Question 13

Multiple Choice

What are two key ways management accounting is different from financial accounting?

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Management accounting provides special-purpose information to people external to the firm and it is highly regulated.

Management accounting provides information for the day-to-day running of an organisation and it is governed by the requirements of FSA.

Management accounting is focused on providing information to shareholders who wish to have input into the management of the organisation and it is regulated by generally accepted accounting principles.

Management accounting focuses on providing information for internal users and it is largely unregulated.

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Question 14

Multiple Choice

The Companies Act requires which of the following to be included in a Directors' Responsibilities statement?
I)State whether in their opinion the financial statements comply with accounting standards and the Corporations Act.
II)State whether in their opinion the financial statements give a true and fair view of the financial position and financial performance of the entity.
III)State whether or not in their opinion,when the declaration was made,there were reasonable grounds to believe that the company would be able to pay its debts as they become due.
IV)State details of directors' emoluments.
V)State principal activities of the entity.

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All of the given answers are correct.

I, II and III only

I, II, III and IV only

IV and V only

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Question 15

Multiple Choice

Which of the following bodies was set up to enhance the public accountability of the IFRS Foundation whilst not impairing the independence of the standard-setting process?

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the IFRS Advisory Council

the IFRS Foundation Support Operations

the IASB

the Monitoring Board of Public and Capital Market Authorities

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Question 16

Multiple Choice

IASB are initials that stand for:

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International Accounting Standards Board

Independent Accounting Standards Bureau

International Accounting Standards Bureau

International Accounting Supervision Board

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Question 17

Multiple Choice

The IASB's responsibilities include:

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developing accounting standards that comply with company legislation.

setting ethical guidelines for the accounting profession.

formulating standards to be used by the entities in the public sector.

developing accounting standards that are consistent with the Conceptual Framework .

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Question 18

Multiple Choice

What option(s)does a company have when directors are of the view that compliance with accounting standards does not generate a 'true and fair view' financial statements?

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Directors may elect not to comply with the standard.

Directors may exercise the 'true and fair view override'.

Directors may disclose the standard in question, the nature of conflict and adjustments made.

All of the given answers are correct.

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Question 19

Multiple Choice

The International Accounting Standards Board reports to which body?

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the Urgent Issues Task Force Group

the Financial Accounting Standards Board

the Financial Reporting Council

Monitoring Board of Public and Capital Market Authorities

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Question 20

Multiple Choice

A criticism of the way the membership of the Financial Reporting Council has been structured is that:

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Groups that are primarily interested in the financial performance of entities are represented while lobby groups with other interests are not.

It has increased the breadth of representation too widely.

The Treasurer does not have sufficient input into the selection process.

It is dominated by professional accountants.

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An Overview Of The International External Reporting Environment

Financial accounting can be considered a process involving the collection and processing of financial information to assist the decision-making needs of parties internal to an organisation.

The regulation of accounting can be argued to be necessary to protect the information rights of parties not involved in the day-to-day operations of the organisation.

The financial statements and supporting notes included in an annual report presented to shareholders at a company's annual general meeting is an example of general-purpose financial statements.

There has been a trend by governments and government departments towards adopting specialised public-sector related standards.

Directors could elect not to comply with an accounting standard on the grounds that applying the particular accounting standard would cause the financial statements not to present a 'true and fair view'.

The role of the Financial Reporting Council is to provide broad oversight of the process for setting International standards,including the authority to direct the IASB to develop,amend or revoke a particular standard.

Accounting cannot be considered to be 'culture free' because the value systems of accountants may be expected to be related to and derived from the values of the society with special reference to work related values and,as such,impacts on accounting systems.

Legislation is very specific about what must,and must not,be included in the Directors' Report that is attached to a company's financial statements.

The main role of the IFRS Interpretations committee is to resolve disputes between FSA and companies concerning accounting treatments in their financial reports.

Corporate governance is the framework of rules,relationships,systems and processes within and by which authority is exercised and controlled in corporations.

Disclosing entities generally,are entities that have: securities (including debentures)quoted on a recognized securities exchange; issued securities (including debentures)pursuant to a prospectus or a takeover scheme; and borrowing corporations.

The Statements of Accounting Concepts within the Conceptual Framework are developed by the International Accounting Standards Board.

What are two key ways management accounting is different from financial accounting?

Which of the following bodies was set up to enhance the public accountability of the IFRS Foundation whilst not impairing the independence of the standard-setting process?

IASB are initials that stand for:

The IASB's responsibilities include:

What option(s)does a company have when directors are of the view that compliance with accounting standards does not generate a 'true and fair view' financial statements?

The International Accounting Standards Board reports to which body?

A criticism of the way the membership of the Financial Reporting Council has been structured is that:

Disclosing entities generally,are entities that have:
securities (including debentures)quoted on a recognized securities exchange; issued securities (including debentures)pursuant to a prospectus or a takeover scheme; and borrowing corporations.