Test Bank For Financial Reporting By Loftus, Leo

Chapter 1:

Accounting regulation and the conceptual framework

Multiple Choice Questions

1) Members of the IASB are appointed by:

1. a) the Monitoring Board.
2. b) the IFRS Advisory Council.

c) the IFRS Foundation Trustees.

1. d) the IFRS Interpretations Committee.

Answer: c

Learning Objective 3: Explain the structure, role, and processes of the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee (IFRIC)

2) Which of the following statements is false:

a) Members of the IFRS Interpretations Committee are appointed by the IASB.

1. b) The IFRS Advisory Council provides strategic advice to the IASB.
2. c) Compliance with IASB standards includes compliance with interpretations issued by IFRS Interpretations Committee.
3. d) IFRS Foundation Trustees appoint members of both IASB and IFRS Advisory Council.

Answer: a

Learning Objective 3: Explain the structure, role and processes of the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee (IFRIC)

3) A conceptual framework consists of a set of principles with the purpose to:

1. a) assist users in the interpretation of information in financial statements.
2. b) assist preparers of financial statements in the application of accounting standards and in dealing with topics that are not the subject of existing accounting standards.
3. c) assist standard setters to develop accounting standards.

*d) all of the options are correct.

Answer: d

Learning Objective 4: Explain the key components of the conceptual framework.