International Financial Standards

Question 1

Who introduced financial standards and why?

Answer 1

The IASB because in the past different countries used their own accounting standards.

Question 2

What are one of the main objectives of the IFRS foundation?

Answer 2

To bring about convergence of national accounting standards and IFRS’s.

Question 3

What is the role of the IASB?

Answer 3

To formulate international financial reporting standards.

Question 4

The IASB conceptual framework identifies user groups. What information is needed for the ‘investor group’?

Answer 4

• Assessment of repayment ability of an entity.
• Measuring performance, risk and return.
• Make, buy or sell goods.