F1 - Accounting Standards and Conceptual Frameworks

Question 0

How many members of the FASB Board are required to issue updates to the Accounting Standards Codification (ASC)?

Answer 0

A majority of the 7 members who serve 5 year terms

Question 1

Authoritative Literature in the Codification

Answer 1

FEDPRIA:
F - Financial Accounting Standards Board (FASB)
E - Emerging Issues Task Force (EITF)
D - Derivative Implementation Group Issues
P - Principles Board Opinions
R - Research Bulletins
I - Interpretations
A - American Institute of Certified Public Accountants (AICPA)

Question 2

What is the purpose of the International Financial Reporting Interpretations Committee (IFRIC)?

Answer 2

To:

1) provide guidance on newly identified issues not yet addressed
2) assist the IASB in achieving convergence

Question 3

What is included to make up International Financial Reporting Standards (IFRS)?

Answer 3

SIRI:
S - SIC (Standing Interpretations Committee)
I - IFRIC (International Financial Reporting Interpretations Committee) Interpretations
R - IFRS (International Financial Reporting Standards)
I - IAS (International Accounting Standards)

Question 4

Fundamental Qualitative Characteristics of Useful Financial Information

Answer 4

Relevance: Passing Confirms Money
P - Predictive Value
C - Confirming Value
M - Materiality

Faithful Representation: Completely Neutral is Free from Error
Completeness
Neutrality
Free from Error

Question 5

Characteristics of Nonbusiness Organizations

Answer 5

GMO:
G - Grants
M - Motive is Non-Profit
O - Ownership Lacking

Question 6

When should revenue be recognized?

Answer 6

Earned

Realized(able)

Question 7

What are the fundamental assumptions of IFRS?

Answer 7

Accrual Basis

Going Concern

Question 8

What are the elements of Financial Statements?

Answer 8

REGL ALE needs ID:
R - Revenue
E - Expenses
G - Gains
L - Losses
A - Assets
L - Liabilities
E - Equity
I - Investments by Owners
D - Distributions to Owners

Question 9

Five Elements of Present Value (PV) Measurement

Answer 9

U VOTE:
U - Uncertainty, the price for bearing
V - Variations in timing of future cash flows
O - Other factors (liquidity issues, market imperfections, etc.)
T - Time value of money
E - Estimate of future cash flow

Question 10

What characteristics enhance the qualitative characteristics (relevance and faithful representation)?

Answer 10

Compare and verify in time to understand

Comparability
Verifiability
Timeliness
Understandability

Question 11

How many members of the IASB Board are required to issue a new IFRS?

Answer 11

9 of the 17 (2 part time) members

Question 12

Financial reporting is useful if:

Answer 12

It provides information useful for making business and investment decisions