Regulatory Framework Flashcards
Q: What is the purpose of the regulatory framework in financial reporting?
A: To ensure that financial reports provide a faithful representation of the financial position and performance of the company.
Q: What are the advantages of a principles-based approach in accounting standards?
A: Consistency, a catch-all scenario, and reduced need for excessive detail.
Q: What are the sources of regulation in financial reporting?
A: Legislation, accounting standards, and stock exchange regulations.
Q: What is GAAP?
A: Generally Accepted Accounting Practices.
Q: What is the role of the International Accounting Standards Board (IASB)?
A: To develop and amend International Financial Reporting Standards (IFRS).
Q: What is the goal of the standard-setting process by the IASB?
A: To develop high-quality, understandable, and enforceable global accounting standards.
Q: What is the purpose of accounting standards?
A: To provide a faithful representation of an entity’s financial performance and financial position.
Q: What are some possible problems with international standards?
A: Lack of flexibility and concern that a single accounting treatment might not be appropriate in all cases.
Q: How many countries require IFRS for listed companies?
A: Over 140 countries.
Q: What is the objective of IFRS 1 First-time Adoption of IFRS?
A: To ensure that an entity’s first financial statements under IFRS contain high-quality information.
Q: What is the purpose of the regulatory framework in financial reporting?
A: To ensure that financial reports provide a faithful representation of the financial position and performance of the company.
Q: What are the advantages of a principles-based approach in accounting standards?
A: Consistency, a catch-all scenario, and reduced need for excessive detail.
Q: What are the sources of regulation in financial reporting?
A: Legislation, accounting standards, and stock exchange regulations.
Q: What is GAAP?
A: Generally Accepted Accounting Practices.
Q: What is the role of the International Accounting Standards Board (IASB)?
A: To develop and amend International Financial Reporting Standards (IFRS).
