Module 1

Question 1

What are the benefits of IFRS?

Answer 1

*IFRS Standards bring transparency
* IFRS Standards strengthen accountability
* IFRS Standards provide information needed to hold management to account.
* IFRS Standards contribute to economic efficiency

Question 2

What are the benefits of moving to one set of standards?

Answer 2

• Inter-firm comparability equals lower cost to investors* Lower listing costs with multiple listings* Greater competition amongst exchanges* More efficient resource allocation* Lower cost of capital* Higher global economic growth rate

Question 3

What does the IFRS Foundation do?

Answer 3

*Appoint IASB members, Advisory Council and IFRIC
* Monitor IASB’s effectiveness, secure funding, approve budget, responsible for constitution

Question 4

What is the IASB and what do they do?

Answer 4

sole responsibility for setting all IFRS standards
* Prepares and issues all IFRS standards Approves principles-based IFRS standards, does not issue detailed application guidelines

Question 5

What does the IFRS Advisory Council do?

Answer 5

*Informs IASB about the views of participants on major standard-setting projects
* Provides advice to IASB on priorities

Question 6

What does the International Financial Reporting Interpretations Committee (IFRIC) do?

Answer 6

Provide guidance on reporting issues not specifically addressed in IASB’s standards, or where unsatisfactory or conflicting interpretations have developed

Question 7

What does the Accounting Standards Advisory Forum (ASAF) do?

Answer 7

*Formalize and streamline IASB’s collective engagement with the global community of National Accounting Standard-setters and regional bodies
* Ensures that a broad range of national and regional input on major technical issues related to IASB’s standard-setting activities are discussed and considered