Regulatory environment of reporting (4-6) Flashcards
Which body acts as the overall supervisor?
IFRS foundation
What topics are not included in IASB framework?
- Regulatory bodies governing financial statements
- Standard setting process
What is a liability?
Present obligation of the entity to transfer an economic resource as a result of past events
What is the threshold quality of useful financial information?
Materiality
What is not a function of IASB?
Enforcing IFRS
What does IASB not cover?
- Format of financial statements
- Users of financial statements
What is not a characteristic of faithful representation?
Accruals
What is a function of the IFRS foundation?
Approving annually the budget and determining the funding of the IASB
What are the functions of the IFRS advisory council?
- Advise IASB on agenda decisions
- Advise IASB on priorities in its work
- Advise IASB or Trustees
Which body is responsible for the approval of interpretations of international financial reporting standards before issuing?
IASB
What are 2 purposes of the Framework?
- Assist all parties to understand and interpret the Standards
- Assist IASB in development of future IFRSs and review of existing IFRSs
Which entity is responsible for governance and fund raising?
IFRS foundation
Which entity is responsible for all technical matters?
IASB
Which entity is responsible for providing timely guidance on the application and interpretation of IFRSs?
IFRS interpretations committee
What are the 2 fundamental qualitative characteristics of IASB’s framework?
- Relevance
- Faithful representation
What is not listed as an element of financial statements under IASB?
Profit
What is not a characteristic of faithful representation?
Verifiability
What are 3 benefits of board diversity?
- More effective decision making
- Better utilisation of talent pool
- Enhancement of corporate reputation and investor relations
Which body is responsible for issuing IFRS?
IASB
What is harmonisation?
Setting bounds to the degree of variation allowed in each country
Who plays a significant role in implementing policies on board diversity?
- Nomination committee
- Chairman
What do the IFAC state as the objective of governance?
The creation and optimisation of sustainable stakeholder value
What are the stages of the development of IFRS?
- Establish advisory committee
- Develop and publish discussion paper
- Produce exposure draft
- Amend exposure draft
- Publish new/revised IFRS
If provisions are not followed what needs to happen?
Statement made in annual report explaining why
What characteristics does financial info need in order to be classed as faithfully represented?
- Neutrality
- Free from error
- Completeness
How should an accountant use the CIMA Code of Ethics?
- Identify any threats they may face to IBCOP
- See if the threat is significant
- Use safeguards to reduce the threat
