FAR - IASB - Role & Standard Setting Process - IASB Accounting Standards

Question 1

When can revisions happen for small and medium-sized entities (SMEs) in IFRS?

Answer 1

Revisions for SMEs standards happen every three years at most.

Question 2

Under IFRS, if no standards exist on a accounting issue, what should companies use?

Answer 2

The definitions, recognition of criteria, and measurement concepts for assets, liabilities, income, and expenses in the Framework.

Question 3

Is IFRS more rule based or principle based?

Answer 3

Principle based.

Question 4

What are some omitted topics for SMEs in IFRS?

Answer 4

Earning per share, interim financial reporting, segment reporting.

Question 5

What is the highest level of international GAAP?

Answer 5

IFRS.

Question 6

List the steps of developing International Accounting Standards.

Answer 6

1) Add item to agenda; 2) Discuss issue; 3) Publish discussion paper if topic is difficult; 4) Prepare & vote on exposure draft; 5) Issue the ED; 6) Analyze the comments on the ED; 7) Debate the issue at hand.

Question 7

List some examples of simplified recognition and measurement for SMEs in IFRS?

Answer 7

Goodwill is amortized; all R&D is expensed, categories of investments reduced, less prior year data required for first-time adoption.

Question 8

What did the SEC eliminate for foreign companies listed in the United States?

Answer 8

A reconciliation of earnings and equity to U.S. GAAP (Form 20-F) in their financial statements.

Question 9

What is simplified in SMEs in IFRS?

Answer 9

Topics that are irrelevant are eliminated, recognition and measurement aspects simplified, disclosures reduced to 10% of those in regular IFRS.