International Financial Reporting Standards

Question 1

In what ways are the standards used?

Answer 1

1 National requirements
2 As the basis for all/some national requirements
3 As an international benchmark for countries developing their own requirements
4 By regulatory authorities for domestic and foreign companies
5 By companies themselves

Question 2

What are the steps to the standard setting process?

Answer 2

ESTABLISH a consultative group to consult with IASB and IFRS advisory council on the issue

STEERING committee is set up

DISCUSSION document is developed and published by the IASB on major projects

EXPOSURE draft is then produced for public comment

ISSUE of final IFRS after review and comments.

Question 3

What is the scope and application of the IFRSs?

Answer 3

They are not intended to be applied to immaterial items, and they are not intended to be retrospective