IFRS test 1 questions & answers
2024/2025
GAAP (for U.S companies) stands for: - ANSWERSgenerally accepted accounting principles
Oversight of accounting standard setting is as follows: - ANSWERSSEC oversees FASB, IOSCO oversees
IASB
Governance of the FASB involves: - ANSWERSFASB, FAF, FASAC, and staff and task forces
which of the following statements is false? Chapter 1 - ANSWERSFASB is a government office within the
SEC
Which of the following statements is true: - ANSWERSThe IASB structure is quite similar to the FASB's
with a foundation, board, advisory council, and interpretations committee
Which of the following statements about the IASB and FASB conceptual frameworks in not correct? -
ANSWERSIFRS does not allow use of fair value as a measurement basis
which of the following statements is false? Chapter 2 - ANSWERSUnder IFRS, there are the same number
of financial statement elements as in U.S. GAAP
Companies that use U.S GAAP: - ANSWERSmay refer to a concept statement on estimating fair values
when market data are not available
The issues that the FASB and IASB must address in developing a conceptual framework include all of the
following except: - ANSWERSshould the role of financial reporting focus on internal decision-making as
well as providing information to assist external users in decision-making
, With respect to FASB/IASB conceptual framework projects: - ANSWERSthe IASB is working at a faster
pace than the FASB
Which of the following is required to be reported in an income statement under U.S. GAAP but not under
IFRS? - ANSWERSIncome from operations
which of the following statements is correct regarding income reporting under IFRS compared to U.S.
GAAP? - ANSWERSIFRS uses the same options for reporting comprehensive income as US GAAP
Under U.S. GAAP: - ANSWERScompanies can report comprehensive income using either a one statement
of two statement approach
The non-controlling interest section of the income statement is: - ANSWERSrequired under IFRS and US
GAAP
Common terminology under US GAAP includes all of the following, except: - ANSWERSreserves
Which of the following statements about IFRS and US GAAP accounting and reporting requirements for
the balance sheet is not correct? - ANSWERSthe presentation formats required by IFRS and US GAAP for
the balance sheet are similar
Current assets listed under IFRS are generally: - ANSWERSin the reverse order of their expected
conversion of cash
Companies that use IFRS: - ANSWERSmay report non-current assets before current assets on the
statement of financial position
Franco company uses IFRS and reports a "reserve" in its statement of financial position. If Franco were
reporting under US GAAP, it would: - ANSWERSbe discouraged from using the term "reserve" in its
financial statements
Which of the following is not a required disclosure under IFRS and US GAAP? - ANSWERSnumber of
employees
2024/2025
GAAP (for U.S companies) stands for: - ANSWERSgenerally accepted accounting principles
Oversight of accounting standard setting is as follows: - ANSWERSSEC oversees FASB, IOSCO oversees
IASB
Governance of the FASB involves: - ANSWERSFASB, FAF, FASAC, and staff and task forces
which of the following statements is false? Chapter 1 - ANSWERSFASB is a government office within the
SEC
Which of the following statements is true: - ANSWERSThe IASB structure is quite similar to the FASB's
with a foundation, board, advisory council, and interpretations committee
Which of the following statements about the IASB and FASB conceptual frameworks in not correct? -
ANSWERSIFRS does not allow use of fair value as a measurement basis
which of the following statements is false? Chapter 2 - ANSWERSUnder IFRS, there are the same number
of financial statement elements as in U.S. GAAP
Companies that use U.S GAAP: - ANSWERSmay refer to a concept statement on estimating fair values
when market data are not available
The issues that the FASB and IASB must address in developing a conceptual framework include all of the
following except: - ANSWERSshould the role of financial reporting focus on internal decision-making as
well as providing information to assist external users in decision-making
, With respect to FASB/IASB conceptual framework projects: - ANSWERSthe IASB is working at a faster
pace than the FASB
Which of the following is required to be reported in an income statement under U.S. GAAP but not under
IFRS? - ANSWERSIncome from operations
which of the following statements is correct regarding income reporting under IFRS compared to U.S.
GAAP? - ANSWERSIFRS uses the same options for reporting comprehensive income as US GAAP
Under U.S. GAAP: - ANSWERScompanies can report comprehensive income using either a one statement
of two statement approach
The non-controlling interest section of the income statement is: - ANSWERSrequired under IFRS and US
GAAP
Common terminology under US GAAP includes all of the following, except: - ANSWERSreserves
Which of the following statements about IFRS and US GAAP accounting and reporting requirements for
the balance sheet is not correct? - ANSWERSthe presentation formats required by IFRS and US GAAP for
the balance sheet are similar
Current assets listed under IFRS are generally: - ANSWERSin the reverse order of their expected
conversion of cash
Companies that use IFRS: - ANSWERSmay report non-current assets before current assets on the
statement of financial position
Franco company uses IFRS and reports a "reserve" in its statement of financial position. If Franco were
reporting under US GAAP, it would: - ANSWERSbe discouraged from using the term "reserve" in its
financial statements
Which of the following is not a required disclosure under IFRS and US GAAP? - ANSWERSnumber of
employees
