Test Bank
Applying IFRS Standards (Wiley
Regulatory Reporting) 5th Edition
by Ruth Picker, Leo van der Tas & David
Kolitz
Complete Chapter 1-24| + A-D Chapters
pg. 1
, CHAPTER 1
The IASB and its Conceptual Framework
Learning Objectives
1.1 Describe the organisational structure of the key players in setting International Financial Reporting
Standards (IFRSs)
1.2 Describe the purpose of a conceptual framework – who uses it and why
1.3 Explain the qualitative characteristics that make information in financial statements useful
1.4 Discuss the going concern assumption underlying the preparation of financial statements
1.5 Define the basic elements in financial statements – assets, liabilities, equity, income and expenses
1.6 Explain the principles for recognising the elements of financial statements
1.7Distinguish between alternative bases for measuring the elements of financial
statements
1.8Outline concepts of capital.
Multiple Choice Questions
1. Which of the following statements is INCORRECT?
Learning Objective 1.1 Describe the organisational structure of the key players in setting IFRSs:
*a. The International Accounting Standards Board was replaced by the International Standards Committee
in 2001.
b. The International Accounting Standards Board is funded by the IASC Foundation.
c. The responsibility for issuing International Financial Reporting Standards lies with the International
Accounting Standards Board.
d. Members of the International Accounting Standards Board are appointed by the IFRS Foundation.
2. Which of the following bodies report to the IFRS Foundation?
Learning Objective 1.1 Describe the organisational structure of the key players in setting IFRSs:
a. The IASB and AASB
pg. 2
,b. The IASB, AASB and the IFRS Advisory Council
c. The IASB and the FASB
*d. The IASB and the IFRS Advisory Council
pg. 3
, 3. Which of the following statements is INCORRECT?
Learning Objective 1.2 Describe the purpose of a conceptual framework – who uses it and why
a. The Framework identifies the qualitative characteristics that make information in financial statements
useful.
*b. The Framework defines principles for accounting recognition, measurement and disclosure.
c. The Framework defines the objective of financial statements.
d. The Framework defines the basic elements of financial statements and the concepts for
recognizing and measuring them in financial statements.
4. Which of the following statements is CORRECT?
Learning Objective 1.2 Describe the purpose of a conceptual framework – who uses it and why
*a. IAS 8 Accounting Policies, Changes in Accounting Estimates, and Errors requires that The Framework
be followed in the absence of a specific standard or interpretation.
b. IAS 8 Accounting Policies, Changes in Accounting Estimates, and Errors recommends, but does not
require The Framework to be followed in the absence of a specific standard or interpretation.
c. The Framework is used solely by the IASB when considering new accounting issues.
d. The Framework is non-binding guidance which does not have to be followed by preparers of financial
statements.
5. The Framework focuses on:
Learning Objective 1.2 Describe the purpose of a conceptual framework – who uses it and why
a. privately owned business entities only.
*b. business entities only, including private and state owned business entities.
c. business entities, although the concepts may be applied to other types of entities, such as not-for profit
entities.
d. all types of entities, including business entities, government and not-for profit entities.
6. General Purpose Financial Statements:
Learning Objective 1.2 Describe the purpose of a conceptual framework – who uses it and why
pg. 4
Applying IFRS Standards (Wiley
Regulatory Reporting) 5th Edition
by Ruth Picker, Leo van der Tas & David
Kolitz
Complete Chapter 1-24| + A-D Chapters
pg. 1
, CHAPTER 1
The IASB and its Conceptual Framework
Learning Objectives
1.1 Describe the organisational structure of the key players in setting International Financial Reporting
Standards (IFRSs)
1.2 Describe the purpose of a conceptual framework – who uses it and why
1.3 Explain the qualitative characteristics that make information in financial statements useful
1.4 Discuss the going concern assumption underlying the preparation of financial statements
1.5 Define the basic elements in financial statements – assets, liabilities, equity, income and expenses
1.6 Explain the principles for recognising the elements of financial statements
1.7Distinguish between alternative bases for measuring the elements of financial
statements
1.8Outline concepts of capital.
Multiple Choice Questions
1. Which of the following statements is INCORRECT?
Learning Objective 1.1 Describe the organisational structure of the key players in setting IFRSs:
*a. The International Accounting Standards Board was replaced by the International Standards Committee
in 2001.
b. The International Accounting Standards Board is funded by the IASC Foundation.
c. The responsibility for issuing International Financial Reporting Standards lies with the International
Accounting Standards Board.
d. Members of the International Accounting Standards Board are appointed by the IFRS Foundation.
2. Which of the following bodies report to the IFRS Foundation?
Learning Objective 1.1 Describe the organisational structure of the key players in setting IFRSs:
a. The IASB and AASB
pg. 2
,b. The IASB, AASB and the IFRS Advisory Council
c. The IASB and the FASB
*d. The IASB and the IFRS Advisory Council
pg. 3
, 3. Which of the following statements is INCORRECT?
Learning Objective 1.2 Describe the purpose of a conceptual framework – who uses it and why
a. The Framework identifies the qualitative characteristics that make information in financial statements
useful.
*b. The Framework defines principles for accounting recognition, measurement and disclosure.
c. The Framework defines the objective of financial statements.
d. The Framework defines the basic elements of financial statements and the concepts for
recognizing and measuring them in financial statements.
4. Which of the following statements is CORRECT?
Learning Objective 1.2 Describe the purpose of a conceptual framework – who uses it and why
*a. IAS 8 Accounting Policies, Changes in Accounting Estimates, and Errors requires that The Framework
be followed in the absence of a specific standard or interpretation.
b. IAS 8 Accounting Policies, Changes in Accounting Estimates, and Errors recommends, but does not
require The Framework to be followed in the absence of a specific standard or interpretation.
c. The Framework is used solely by the IASB when considering new accounting issues.
d. The Framework is non-binding guidance which does not have to be followed by preparers of financial
statements.
5. The Framework focuses on:
Learning Objective 1.2 Describe the purpose of a conceptual framework – who uses it and why
a. privately owned business entities only.
*b. business entities only, including private and state owned business entities.
c. business entities, although the concepts may be applied to other types of entities, such as not-for profit
entities.
d. all types of entities, including business entities, government and not-for profit entities.
6. General Purpose Financial Statements:
Learning Objective 1.2 Describe the purpose of a conceptual framework – who uses it and why
pg. 4
