Accounting Expectations Gap and Financial Reporting Challenges

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What is one of the elements that consists of the IASB's thorough and transparent due process in establishing financial accounting standards?

An independent standard-setting board overseen by a geographically and professionally diverse body of trustees (correct)

Collaborative efforts with a single standard-setting body

A secretive process with limited stakeholder engagement

No evaluation of research or public responses

Which step is NOT part of the process followed by the IASB to develop a typical IFRS?

Public hearings are held on the proposed standard

Topics are identified and placed on the Board’s agenda

The Board evaluates research and public responses and issues an exposure draft

Final standard is issued without any evaluation (correct)

To reinforce the importance of an open, transparent, and independent due process, how many well-paid members make up the IASB?

16 members (correct)

8 members

5 members

20 members

What distinguishes the IASB from being part of any professional organization?

Autonomy and accountability only to the IFRS Foundation Signup and view all the answers

What is a key aspect of the collaboration process followed by the IASB in developing financial accounting standards?

Engagement with investors, regulators, business leaders, and the global accountancy profession at every stage Signup and view all the answers

What is NOT a characteristic of the IASB's membership?

Short 1-year terms for members Signup and view all the answers

Who supported the creation of the Accounting Standards Council (ASC)?

Professional Regulation Commission (PRC) Signup and view all the answers

How many members were there in the ASC?

Eight Signup and view all the answers

What is the role of FINEX in the ASC?

Representing financial executives responsible for financial statements Signup and view all the answers

Which standard-setting body was mentioned as a reference for the ASC?

International Accounting Standards Board (IASB) Signup and view all the answers

How do accounting principles become generally accepted in the Philippines?

Through substantial authoritative support from relevant parties Signup and view all the answers

What is the primary responsibility of PICPA within the ASC?

Setting accounting standards Signup and view all the answers

What is the expectations gap in accounting?

The difference between what the public thinks accountants should do and what accountants think they can do. Signup and view all the answers

Which of the following is NOT a significant financial reporting challenge facing the accounting profession?

Auditing financial statements. Signup and view all the answers

What complicates the process of ethical sensitivity and selection among alternatives in accounting?

Time pressure, job pressures, client pressures, personal pressures, and peer pressures. Signup and view all the answers

What does convergence to a single set of high-quality global financial reporting standards aim to achieve?

Greater comparability and transparency. Signup and view all the answers

What has been agreed upon by U.S. and European regulators regarding accounting standards?

Recognition of each other's standards for listing on world securities exchanges. Signup and view all the answers

How many votes are needed to issue a new IFRS?

Nine votes Signup and view all the answers

Which body issued 41 International Accounting Standards (IAS) that are now considered under the umbrella of IFRS?

IASC Signup and view all the answers

What is the purpose of the Conceptual Framework for Financial Reporting issued by the IASB?

To create a tool for solving financial reporting problems consistently Signup and view all the answers

Which pronouncement must be followed and is considered authoritative according to the text?

International Financial Reporting Interpretations Signup and view all the answers

How many International Financial Reporting Standards (IFRS) has the IASB issued to date?

13 standards Signup and view all the answers

Does the Conceptual Framework for Financial Reporting define specific standards for measurement or disclosure issues?

No, it does not Signup and view all the answers

How many members are in the Financial Reporting Standards Council?

15 members Signup and view all the answers

Who is required to be the Chairman of the Financial Reporting Standards Council?

A senior accounting practitioner Signup and view all the answers

How many representatives are there from the SEC in the Financial Reporting Standards Council?

1 representative Signup and view all the answers

Which organization is NOT represented in the Financial Reporting Standards Council?

DOF Signup and view all the answers

How many representatives are there from the accredited national professional organization of CPAs in public practice on the Financial Reporting Standards Council?

2 representatives Signup and view all the answers