Accounting Standards

Question 1

What are accounting standards?

Answer 1

Accounting standards are the guidelines set by the IASB and are the best accounting practices when treating financial information

Question 2

What are the groups which IASB representatives are from?

Answer 2

1. Preparers of general purpose financial statements
2. Users of general purpose financial statements
3. the auditing profession
4. academia

Question 3

The steps in the Due Process are as follows:

Answer 3

1. IASB sets up steering committee
2. steering committee identifies issues
3. study national and regional requirements and practices in relation to issues
4. prepares and presents a point outline to IASB
5. point outline to exposure draft then sent to member organisations for discussion/feedback
6. revised exposure draft is adopted then issued as IFRS

Question 4

Purpose of the Conceptual Framework

Answer 4

a. assist the IASB in development of future International Accounting Standards
(IASs) and IFRSs
b. promote harmonisation of regulations, accounting standards and procedures,
and, as a result, reduce the number of alternative accounting treatments
permitted by IASs
c. assist national standard-setting bodies in developing national standards
d. assist preparers of fi nancial statements in dealing with topics for which no IAS
currently exists
e. assist auditors in arriving at an opinion as to whether fi nancial statements
conform to IASs.

Question 5

What levels does the conceptual framework use to analyze accounting information

Answer 5

objectives
qualitative characteristics
recognition, measurement and disclosure principles