Regulatory environment of reporting (4-6)

Question 1

Which body acts as the overall supervisor?

Answer 1

IFRS foundation

Question 2

What topics are not included in IASB framework?

Answer 2

• Regulatory bodies governing financial statements
• Standard setting process

Question 3

What is a liability?

Answer 3

Present obligation of the entity to transfer an economic resource as a result of past events

Question 4

What is the threshold quality of useful financial information?

Answer 4

Materiality

Question 5

What is not a function of IASB?

Answer 5

Enforcing IFRS

Question 6

What does IASB not cover?

Answer 6

• Format of financial statements
• Users of financial statements

Question 7

What is not a characteristic of faithful representation?

Answer 7

Accruals

Question 8

What is a function of the IFRS foundation?

Answer 8

Approving annually the budget and determining the funding of the IASB

Question 9

What are the functions of the IFRS advisory council?

Answer 9

• Advise IASB on agenda decisions
• Advise IASB on priorities in its work
• Advise IASB or Trustees

Question 10

Which body is responsible for the approval of interpretations of international financial reporting standards before issuing?

Answer 10

IASB

Question 11

What are 2 purposes of the Framework?

Answer 11

• Assist all parties to understand and interpret the Standards
• Assist IASB in development of future IFRSs and review of existing IFRSs

Question 12

Which entity is responsible for governance and fund raising?

Answer 12

IFRS foundation

Question 13

Which entity is responsible for all technical matters?

Answer 13

IASB

Question 14

Which entity is responsible for providing timely guidance on the application and interpretation of IFRSs?

Answer 14

IFRS interpretations committee

Question 15

What are the 2 fundamental qualitative characteristics of IASB’s framework?

Answer 15

• Relevance
• Faithful representation

Question 16

What is not listed as an element of financial statements under IASB?

Answer 16

Profit

Question 17

What is not a characteristic of faithful representation?

Answer 17

Verifiability

Question 18

What are 3 benefits of board diversity?

Answer 18

• More effective decision making
• Better utilisation of talent pool
• Enhancement of corporate reputation and investor relations

Question 19

Which body is responsible for issuing IFRS?

Answer 19

IASB

Question 20

What is harmonisation?

Answer 20

Setting bounds to the degree of variation allowed in each country

Question 21

Who plays a significant role in implementing policies on board diversity?

Answer 21

• Nomination committee
• Chairman

Question 22

What do the IFAC state as the objective of governance?

Answer 22

The creation and optimisation of sustainable stakeholder value

Question 23

What are the stages of the development of IFRS?

Answer 23

• Establish advisory committee
• Develop and publish discussion paper
• Produce exposure draft
• Amend exposure draft
• Publish new/revised IFRS

Question 24

If provisions are not followed what needs to happen?

Answer 24

Statement made in annual report explaining why

Question 25

What characteristics does financial info need in order to be classed as faithfully represented?

Answer 25

• Neutrality
• Free from error
• Completeness

Question 26

How should an accountant use the CIMA Code of Ethics?

Answer 26

• Identify any threats they may face to IBCOP
• See if the threat is significant
• Use safeguards to reduce the threat