IFRS Test Questions & Answers 2024/2025
IFRS is a core principals based approach which is tied to the ______ ________ where significant ____ ____ is required and minimal ____. - ANSWERSconceptual framework
professional judgement
guidance
IFRS is more principles and is therefore harder to...
IFRS is a core principals based approach which is tied to the ______ ________ where significant ____
____ is required and minimal ____. - ANSWERSconceptual framework
professional judgement
guidance
IFRS is more principles and is therefore harder to ______. But it does make it easier to _______. -
ANSWERSaudit
translate
a coherent system of interrelated objectives and fundamental concepts that prescribes the nature,
function, and limits of financial accounting and reporting and that is expected to lead to consistent
guidance. - ANSWERSconceptual framework
refers to how you see things on the financial statements - ANSWERSpresentaiton
IASB combines the presentation and disclosure chapters into - ANSWERSone
IASB has _______________ principles (when something should go on the books and when something
should come off the books) - ANSWERSrecognition and derecognition
IASB also has a chapter called capital and capital maintenance - stewardship management has to
maintain capital - FASB - ANSWERSdoes not have
what are the five parts of the conceptual frameowkr for the fasb - ANSWERSqualitative characteristics
disclosure concepts
presentation concepts
,reporting entity
measurment concepts
element definitions
to provide financial information about the reporting entity that is useful to existing and potential
investors, lenders and other creditors in making decisions about providing resources to the entity -
ANSWERS"The objective of general purpose financial reporting
The scope of financial reporting includes - ANSWERSonly finances - nothing else
You only want to capture information that defines the - ANSWERSreporting entity
Investors, creditor's, and lenders are the - ANSWERSend users - both now and in the future
Financial reporting not intended to create - ANSWERSvalue
Describe the types (ie qualities) of information that are likely to be most useful...
Establishes concepts to underlie the use of judgment - ANSWERSqualitative characteristics of the
conceptual framework
Management has access to whatever information they want- financial reporting is for - ANSWERSoutside
users
Qualitative characteristics establish concepts that - ANSWERSunderlie the use of judgement
Conservatism does not exist anywhere in - ANSWERSFASB or IASB framework
IASB framework talks about __________ not presented in a way that biases a user of the financial
statements in a positive or negative way - ANSWERSneutrality
, IASB says ________ is about good estimates and exercising caution - conservativism is about lowballing
the numbers - ANSWERSprudence
ALL the fundamental qualitative characteristics
_______ - capable of making a difference in the decisions made by users
___ _______- can make good predictions of future
economic activity
____ ____- value that can confirm past
predictions
_______-information is material if omitting or
misstating is could misstate F/S - it is entity
specific - material for one company may not be
material for another
___ _____- faithfully represents the economic phenomena that it purports to represent
_____: all information with numbers or
words that describes accurately or actually
portrays the economic phenomena that occurs
within the company
____
______ ___ ____- estimates cant be free from error - should be good support in making estimates -
correctness is describing the process - ANSWERSrelevance
predictive value
confirmatory value
materialtiy
faithful representation
complete
netural
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