Czech Republic Accounting Regulations

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What was the effective date of the new Commercial Code in the Czech Republic?

January 1, 1991
January 1, 1992 (correct)
January 1, 1993
January 1, 1995

What is the primary influence on the new Commercial Code in the Czech Republic?

US commercial law
French commercial law
UK commercial law
German commercial law (correct)

What is the purpose of the Accountancy Act in the Czech Republic?

To regulate auditing firms
To set up tax rates
To establish financial reporting requirements (correct)
To oversee stock exchanges

What was the primary reason for the amendments to the Accountancy Act in 2002 and 2004?

To bring Czech accounting closer to IFRS (D) Signup and view all the answers

What are the components of financial statements in the Czech Republic?

Balance sheet, profit and loss account, and notes (C) Signup and view all the answers

What financial reporting framework do listed Czech companies use for both consolidated and individual company financial statements?

IFRS (D) Signup and view all the answers

What was introduced in the Netherlands in 1970 as part of a broader program of changes in company legislation?

The Act on Annual Financial Statements and the Tripartite Accounting Study Group (D) Signup and view all the answers

What is the purpose of the guidelines issued by the Dutch Accounting Standards Board?

To provide comprehensive standards for financial reporting (A) Signup and view all the answers

What was the outcome of the Act on Annual Financial Statements being incorporated into the civil code in 1975?

The Act became a legally enforceable regulation (B) Signup and view all the answers

Before 2005, what was the strategy of the DASB regarding IFRS?

To implement changes in IFRS into its own standards (D) Signup and view all the answers

What is the relationship between the DASB guidelines and the accounting and financial reporting provisions of the Dutch civil code?

The DASB guidelines are not legally enforceable, but are traditionally followed (B) Signup and view all the answers

What was the impact of the 1983 legislation on the Act on Annual Financial Statements?

The EU Fourth Directive was incorporated into Dutch law (C) Signup and view all the answers

What is the primary reason for the lack of general legal requirements for the publication of periodic audited financial statements in the United States?

The federal government has limited jurisdiction over corporate law (C) Signup and view all the answers

Which of the following types of companies has compulsory requirements for financial reporting?

Companies listed on U.S. stock exchanges (B) Signup and view all the answers

What is the role of the private sector in setting accounting and reporting standards for public companies in the United States?

The private sector sets standards, which the SEC relies on (A) Signup and view all the answers

What is the relationship between the SEC and Congress?

The SEC is an independent regulatory agency, and Congress has no direct influence over its policies (B) Signup and view all the answers

How are the SEC commissioners appointed?

They are appointed by the president and confirmed by the Senate (B) Signup and view all the answers

What is the source of the SEC's power?

Congress has granted the SEC its power through statute (B) Signup and view all the answers

What is the primary objective of the Statements of Financial Accounting Standards (SFASs) issued by the FASB?

To provide information that is useful to present and potential investors, creditors, and others (B) Signup and view all the answers

What is the main result of the Norwalk Agreement between the FASB and IASB in 2002?

The removal of existing differences between their standards and coordination of future standard setting (D) Signup and view all the answers

What is a requirement for members of the FASB to serve?

To sever all economic and organizational ties to prior employers or ownership (B) Signup and view all the answers

What prompted the passage of the Sarbanes-Oxley Act in 2002?

The numerous corporate and accounting scandals, such as Enron and WorldCom (D) Signup and view all the answers

How many Statements of Financial Accounting Standards (SFASs) had been issued by the FASB as of June 2009?

165 (B) Signup and view all the answers

What is the role of the SEC in the regulatory process?

To issue Accounting Series Releases, Financial Reporting Releases, and Staff Accounting Bulletins (B) Signup and view all the answers

What is the fundamental principle of the Company Law in Japan?

Creditor and shareholder protection (A) Signup and view all the answers

Which ministry is responsible for administering the Company Law in Japan?

Ministry of Justice (A) Signup and view all the answers

What is the main objective of the Securities and Exchange Law in Japan?

To provide information for investment decision-making (B) Signup and view all the answers

Which of the following laws is modelled after the U.S. Securities Acts?

Securities and Exchange Law (B) Signup and view all the answers

What is the primary focus of disclosures under the Company Law in Japan?

Creditworthiness and availability of earnings for dividend distribution (B) Signup and view all the answers

Which entity is responsible for administering the Securities and Exchange Law in Japan?

Financial Services Agency (D) Signup and view all the answers