Development of Financial Reporting Framework and Standard-Setting Bodies

The international accounting standard board was formed to
Enforce IFRS in foreign countries

Develop word wide accounting standard
Established accounting standard for multinational entities
Develop accounting standard for countries that do not have their own standard – setting bodies
Ans.
Develop word wide accounting standard
Are the following statements about the Norwalk Agreement true or false?
Statement 1: The Norwalk Agreement requires the consolidated financial
statements of all listed United States companies, starting after 1 January 2005, to
be prepared in accordance with International Accounting Standards.
Statement 2: The Norwalk Agreement was an agreement for short-term financial
reporting convergence between the European Commission and the United States
government
False, False
False, True
True, False
True, True
Ans.
False, False
It is a global phenomenon intended to bring about transparency and a higher degree of

comparability in financial reporting , both of which will benefit the investors and are essential to
achieved the goal of one uniform and globally accepted financial reporting standard
IFRS
Borderless accounting
World trade
Information technology
Ans.
IFRS
The singularly unique functions performed by Certified Public Accountant is
Tax preparations
Management Advisory service
The attest functions
The preparations of financial statement
Ans.
The attest functions
The purposed of the international Financial Reporting Standard is to

Issue enforceable standard which regulates the financial accounting and reporting of
multinational entities
Develop a uniform currency in which the financial transactions of entities through out the word
would be measured
Promote uniform accounting standard among countries of the world
Arbitrate accounting dispute between auditor and international entities

Ans.
Promote uniform accounting standard among countries of the world
The process of establishing financial accounting standard
Is a democratic process in that a majority of practicing accountants must agree with a standard
before it becomes implemented
Is a legislative process base on rules promulgated by government agencies
Is base solely on economic analysis of the effect each standard will have if it is implemented
Is a social process which incorporate political actions of various interested user group as well as
profession research and logic
Ans.
Is a social process which incorporate political actions of various interested user group as well as
profession research and logic
As independent or external auditor , CPA are primarily responsible for
Preparing financial statement in conformity with GAAP

Certifying the accuracy of financial statement
Expressing an opinion as to the fairness of financial statement
Filling financial statement with the SEC
Ans.
Expressing an opinion as to the fairness of financial statement
Which ONE of the following bodies is responsible for reviewing accounting issues that
are likely to receive divergent or unacceptable treatment in the absence of authoritative
guidance, with a view to reaching consensus as to the appropriate accounting treatment?
International Financial Reporting Interpretations Committee (IFRIC)

Standards Advisory Council (SAC)
International Accounting Standards Board (IASB)
International Accounting Standards Committee Foundation (IASC Foundation)
Ans.
International Financial Reporting Interpretations Committee (IFRIC)
Once an accounting standard has been established
The standard is continually reviewed to see if modifications is necessary

The standard is not review unless the SEC makes a compliant
The task of reviewing the standard to see if modifications is necessary is given to the PICPA
The principle of consistency requires that no revision ever be made to the standard
Ans.
The standard is continually reviewed to see if modifications is necessary
Are the following statements true or false?

Statement 1: The Norwalk Agreement outlines the commitment of the IASB and FASB
towards harmonisation of International and US Accounting Standards.
Statement 2: IOSCO requires mandatory preparation of financial statements in
accordance with IFRS
False, False
False, True
True, False
True, True
Ans.
True, False

Development of Financial Reporting Framework and Standard-Setting Bodies

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Development of Financial Reporting Framework and Standard-Setting Bodies

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The international accounting standard board was formed to

Enforce IFRS in foreign countries

It is a global phenomenon intended to bring about transparency and a higher degree of

The singularly unique functions performed by Certified Public Accountant is

The purposed of the international Financial Reporting Standard is to

Promote uniform accounting standard among countries of the world

Arbitrate accounting dispute between auditor and international entities

The process of establishing financial accounting standard

Is a legislative process base on rules promulgated by government agencies

As independent or external auditor , CPA are primarily responsible for

Preparing financial statement in conformity with GAAP

International Financial Reporting Interpretations Committee (IFRIC)

The standard is continually reviewed to see if modifications is necessary

Are the following statements true or false?

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