IASB

Question 1

Duties of the trustees of the IFRS Foundation:

Answer 1

Duties of the Trustees of the IFRS Foundation:

1. Appoint members of IASB and establish their contracts of service and performance criteria.
2. Appoint members of the IFRS Interpretations Committee and the IFRS Advisory Council.
3. Approve the budget of the IFRS Foundation and ensure that operations are sufficiently funded in order to secure the fulfillment of the standard setting objectives without compromising the independence and objectivity of the standard setting process.

Question 2

Objectives of the IFRS Foundation:

Answer 2

Objectives of the IFRS Foundation:

1. Promote and facilitate the adoption of IFRS through the convergence of national accounting standards and IFRS. Another objective of the IFRS Foundation is to take account of, as appropriate, the needs of a range of sizes and types of entities in diverse economic settings.

Question 3

The IFRS Foundation Monitoring Board provides the formal link between trustees and public authorities. The members of the Monitoring Board represent public authorities that have oversight of accounting standard setters. e.g The SEC is the primary overseer and regulator of the US capital markets, and the Chair of the SEC is a part of the Monitoring Board.

Answer 3

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Question 4

IASB Due Process Procedure:

Answer 4

1. Add the item to the working agenda
2. Discuss the issue
3. Prepare the discussion paper
4. Publish the discussion paper
5. Issue the exposure draft
6. Analyze comments on the Exposure Draft
7. Issue the IFRS

Question 5

In order to qualify to report under IFRS for SMEs, the entity CANNOT have public accountability. The term “public accountability” according to IFRS describes entities who

Answer 5

The term “public accountability” according to IFRS describes entities who file, or are in the process of filing, financial statements with a securities commission or other regulatory organization for the purpose of issuing any class of instruments in a public market. Publicly accountable entities do NOT qualify to use IFRS for SMEs.

Question 6

IASB definition of an SME

Answer 6

IASB definition of an SME is that the entity does NOT have public accountability and the entity publishes general purpose financial statements for external users, such as owners who are not involved in managing the business, existing and potential creditors, and credit rating agencies.

Question 7

IFRS Hierarchy, most to least authoritative:

Answer 7

IFRS Hierarchy, most to least authoritative:

1. Requirements in IFRS dealing with similar and related issues.
2. The definitions, recognition criteria, and measurement concepts for assets, liabilities, income, and expenses in the framework.
3. If no such guidance exists, pronouncements of other standard setting bodies using a similar conceptual framework, other accounting literature, and accepted industry practices provided there is no conflict with the first two levels above.