IASB Overview and Functions Quiz

Play an AI-generated podcast conversation about this lesson

What is the primary role of the IASB?

Develop national accounting standards

Oversee the stock market operations

Provide tax regulations for businesses

Achieve convergence in accounting principles globally (correct)

How many trustees are part of the IFRS Foundation?

16 trustees

3 trustees

40 trustees

22 trustees (correct)

What is the function of the Monitoring Board in relation to the IASB?

Manage the fund raising for the IFRS Foundation

Develop technical standards

Conduct audits of financial statements

Approve and oversee the appointment of trustees (correct)

Which committee serves as the interpretative body of the IASB?

IFRS Interpretations Committee (B) Signup and view all the answers

What was the former name of the IFRS Advisory Council?

Standards Advisory Council (A) Signup and view all the answers

How many members are allowed on the IASB Board?

16 members, with a maximum of 3 part-time members (B) Signup and view all the answers

What is the main function of the IFRS Advisory Council?

Provide a forum for participation in the standard-setting process (A) Signup and view all the answers

Which of the following statements about the IASB's establishment is correct?

Formed in 2001 as an independent private sector body (D) Signup and view all the answers

What is the primary function of the Interpretations Committee?

To review and provide guidance on accounting issues within IFRSs (B) Signup and view all the answers

Why is compliance with accounting standards necessary?

For the fair presentation of financial statements (B) Signup and view all the answers

What limitation does the IASB have regarding its accounting standards?

It can only recommend standards but not enforce them (A) Signup and view all the answers

Which group is primarily interested in the profitability and stability of an employer?

Employees (A) Signup and view all the answers

What does the framework for the preparation and presentation of financial statements address?

The qualitative characteristics and elements needed for financial statements (A) Signup and view all the answers

Which of the following stakeholders is concerned with receiving timely payments for loans?

Lenders (A) Signup and view all the answers

What is a main focus of users of financial statements?

Allocating resources efficiently (D) Signup and view all the answers

What is a reason for the increasing support of IAS by Philippine organizations?

Improvement and recognition of IASB standards (B) Signup and view all the answers

What is the primary objective of financial statements?

To provide information for making economic decisions (B) Signup and view all the answers

Which accounting basis recognizes revenues when they are earned?

Accrual Basis (A) Signup and view all the answers

What assumption is made when preparing financial statements regarding the enterprise's future?

The going concern assumption that it will continue operations (B) Signup and view all the answers

What does materiality in financial statements refer to?

The size of an item or error affecting decision-making (D) Signup and view all the answers

How does relevance influence financial information?

It influences the economic decisions of users (A) Signup and view all the answers

What is primarily assessed in the stewardship of management?

The accountability for resources entrusted to management (D) Signup and view all the answers

Which of the following is NOT a primary qualitative characteristic of financial statements?

Comparability (A) Signup and view all the answers

What can influence the assessment of the usefulness of financial information?

The materiality of information presented (A) Signup and view all the answers

What constitutes reliable information?

Information that is presented with no errors or bias (C) Signup and view all the answers

Which of the following is a primary qualitative characteristic related to the presentation of financial information?

Understandability (C) Signup and view all the answers

What constraint affects the application of qualitative characteristics in financial reporting?

Balance between benefits and costs (A) Signup and view all the answers

Which elements are related to the measurement of financial position in a balance sheet?

Assets, liabilities, and equity (C) Signup and view all the answers

Which of the following describes prudence in financial reporting?

Using conservative estimates in measurement (A) Signup and view all the answers

What is one factor that contributes to the completeness of financial information?

Detailed disclosures and notes (A) Signup and view all the answers

How does comparability enhance the usefulness of financial information?

By allowing users to measure performance against others (B) Signup and view all the answers

What is a major focus when ensuring the faithful representation of information?

Avoiding ambiguity in reports (C) Signup and view all the answers