Test Bank For Financial Reporting By Loftus, Leo
Accounting regulation and the conceptual framework
Multiple Choice Questions
1) Members of the IASB are appointed by:
- a) the Monitoring Board.
- b) the IFRS Advisory Council.
c) the IFRS Foundation Trustees.
- d) the IFRS Interpretations Committee.
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.
- b) The IFRS Advisory Council provides strategic advice to the IASB.
- c) Compliance with IASB standards includes compliance with interpretations issued by IFRS Interpretations Committee.
- d) IFRS Foundation Trustees appoint members of both IASB and IFRS Advisory Council.
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:
- a) assist users in the interpretation of information in financial statements.
- 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.
- c) assist standard setters to develop accounting standards.
*d) all of the options are correct.
Learning Objective 4: Explain the key components of the conceptual framework.