IASB Accounting Standards

Question 1

What are some omitted topics for Small and Medium-sized Entities (SMEs) in International Financial Reporting Standards (IFRS)?

Answer 1

Earnings Per Share, Interim Financial Reporting, Segment Reporting.

Question 2

What did the Securities and Exchange Commission (SEC) eliminate for foreign companies listed in the United States?

Answer 2

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

Question 3

Is IFRS more rules based or principle based?

Answer 3

Principle based.

Question 4

What is simplified for Small and Medium-sized Entities (SMEs) in International Financial Reporting Standards (IFRS)?

Answer 4

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

Question 5

If no standards exist on an accounting issue, what should companies use?

Answer 5

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

Question 6

List some examples of simplified recognition and measurement for Small and Medium-sized Entities (SMEs) in International Financial Reporting Standards (IFRS)?

Answer 6

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

Question 7

List the steps of developing International Accounting Standards.

Answer 7

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

Question 8

What is the highest level of International GAAP?

Answer 8

IFRS.

Question 9

When can revisions happen for Small and Medium-sized Entities (SMEs) in International Financial Reporting Standards (IFRS)?

Answer 9

Revisions for SMEs standards happen every three years at most.