IFRS Exam Questions with Complete Solutions 2024/2025
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Course
IFRS
Institution
IFRS
IFRS Exam Questions with Complete Solutions 2024/2025
Which organization's standards are the most authoritative in the hierarchy of international accounting? - ANSWERSThe International Accounting Standards Board (IASB)
Where is the first place management should look for guidance on internat...
IFRS Exam Questions with Complete
Solutions 2024/2025
Which organization's standards are the most authoritative in the hierarchy of international accounting? -
ANSWERSThe International Accounting Standards Board (IASB)
Where is the first place management should look for guidance on international recognition and
accounting policies? - ANSWERSThe International Financial Reporting Standards (IFRS) issued by the IASB
Which framework helps to develop standards for international accounting? - ANSWERSThe IASB
Framework.
* The framework is NOT a standard itself
* The framework does not supersede any standard's authority
What is the objective of the IFRS framework? - ANSWERSTo provide users with information on
international accounting.
Which assumptions are followed within the IRFS framework? - ANSWERS-Entity is a Going Concern.
-Entity uses the accrual basis of accounting.
What are the Qualitative Characteristics of accounting information within IFRS? - ANSWERSRelevance
and Faithful Representation:
Relevance
-Makes a difference to the user
- has Predictive Value for future trends
- has Confirming Value for past predictions
Faithful Representation
, -Complete
-Neutral
-Free from Error
How does comparability differ under GAAP versus IFRS? - ANSWERSComparative information from the
prior year is required under IFRS.
GAAP requires that if multiple years are presented they are consistently prepared however it doesn't
require prior year comparative statements.
What is the Pervasive Constraint within IFRS? - ANSWERSCost vs. Benefit
Which items are considered reporting elements under IFRS? - ANSWERS-Asset
-Liability
-Equity
-Income
-Expense
What are the criteria for recognition on IFRS financial statements? - ANSWERS-Probable future economic
benefit
-Can be measured reliably
--If the value or outcome cannot be measured reliably IFRS requires the use of the Cost Recovery
Method.
When transitioning to IFRS what type of financial statement must be produced for the first reporting
period? - ANSWERSA full comparative statement using IFRS.
If IFRS was implemented in June 2012 for use in the December 31 2012 financial statements what is the
Date of Transition? - ANSWERSJanuary 1 2011 because a full year of comparative statements is required
from the previous year
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