International Accounting Standards

Question 1

What is a Contingency?

Answer 1

A future event of circumstance that is possible but cannot be predicted with certainty

Question 2

IFRS for SMEs

Answer 2

I. IFRS for SME is based on accrual basis accounting
II. Generally, IFRS for SMEs may be used as an alternative to using OCBOA
III. LIFO is probihited
IV. Goodwill and intangible assets are amortized over a period not to exceed 10 yrs

Question 3

IFRS (International Financial Reporting Board)

Answer 3

Issued by the International Accounting Standards Board (IASB)

Question 4

Types of GAAP principles for a US entity

Answer 4

Depending on the company.

1. US GAAP
2. US OCBOA
3. International (IFRS)
4. IFRS for SME

Question 5

International Financial Reporting Standards (IFRS) Structure

Answer 5

IFRS Foundation Monitoring Board 3. Public Accountability
IFRS Foundation Trustees 2. Governance and Oversight
IFRS Foundation 1. Independent standard-setting and related activities. Parent of:
* IASB International Accounting Standards Board
* IFRS Interpretation Committee
Appoints members of: IASB, IFRS Advisory Council, IFRS Interpretations Committee

Question 6

A member of the Monitoring Board

Answer 6

Chair of the U.S Securities and Exchange Commission is a member of the Monitoring Board.

Question 7

Role of the trustees of the IFRS Foundation

Answer 7

Appoints members of the IASB, IFRS Interpretations Committee, and members of IFRS Advisory Council.
Approves the annual budget of the IFRS Foundation and determines basis of funding.
Annually review the strategy of the IFRS Foundation and the IASB and its effectiveness, including the de

Question 8

Financial Statement assumptions under the IASB

Answer 8

Accrual Basis & Going Concern

Question 9

IASB

Answer 9

Has no enforcement Authority such as the SEC in the US, Central Banks, and governmental authorities.

Question 10

IASB Framework Porpuse

Answer 10

Assist in promoting the harmonization of regulations, accounting standards, and procedures relating to the presentation of financial statements by providing basis for reducing the number of alternative treatments permitted by IFRS.

Question 11

Qualitative Characteristics of IASB framework

Answer 11

Relevance and faithful representations

Question 12

IASB Framework Asset Characteristic

Answer 12

Assets must simply be controlled by the entity and have an expectation of generating future economic benefits.

Question 13

Under IFRS, Statement of Financial Position …

Answer 13

Has just two classifications: Current and Non-Current

Question 14

Balance Sheet IFRS vs GAAP

Answer 14

Under GAAP no comparative period are required unless is a public company.

Under IFRS comparative periods are required in all instances.