International Financial Reporting Standards (IFRS)
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Questions and Answers

What is the main underlying assumption in preparing financial statements?

  • Accrual
  • Going concern (correct)
  • Consistency
  • Materiality

    • The IASB's Conceptual Framework provides the basis for its IFRSs.

    True

    What is the aim of achieving a balance between qualitative characteristics in financial statements?

    To meet the objective of financial statements.

    In preparing financial statements, accountants follow certain fundamental ______________.

    <p>assumptions</p> Signup and view all the answers

    Match the qualitative characteristics with their descriptions:

    <p>Comparability = Ability to compare financial information Verifiability = Ability to verify financial information Timeliness = Provision of financial information in a timely manner Faithful representation = Provision of financial information that faithfully represents the economic phenomena</p> Signup and view all the answers

    The Conceptual Framework states that _______________ characteristics are the attributes that make the information provided in financial statements useful to users.

    <p>qualitative</p> Signup and view all the answers

    What is the main underlying assumption of the IASB's Conceptual Framework?

    <p>Going concern</p> Signup and view all the answers

    The Conceptual Framework states that the four enhancing qualitative characteristics are relevance, reliability, comparability, and consistency.

    <p>False</p> Signup and view all the answers

    What is the aim of balancing qualitative characteristics in financial statements?

    <p>To achieve an appropriate balance to meet the objective of financial statements</p> Signup and view all the answers

    The business entity concept states that the financial affairs of the business should be separated from the affairs of the ______________.

    <p>owner</p> Signup and view all the answers

    Match the qualitative characteristics with their definitions:

    <p>Understandability = The characteristic that makes information easy to grasp Verifiability = The characteristic that ensures information is accurate and reliable Timeliness = The characteristic that ensures information is available in time to influence decisions Comparability = The characteristic that enables users to identify similarities and differences between entities</p> Signup and view all the answers

    Which qualitative characteristic is about ensuring information is available in time to influence decisions?

    <p>Timeliness</p> Signup and view all the answers

    The IASB's Conceptual Framework provides the basis for only some IFRSs.

    <p>False</p> Signup and view all the answers

    What is the concept that should be considered if the owner of a business takes goods from inventory for their own personal use?

    <p>The business entity concept</p> Signup and view all the answers

    Which of the following statements correctly describes the contents of a Balance Sheet?

    <p>A list of all the assets owned and all the liabilities owed by a business</p> Signup and view all the answers

    What is the name of the organization that issues the International Financial Reporting Standards?

    <p>International Accounting Standards Board</p> Signup and view all the answers

    The IFRS Foundation logo is a Trade Mark of the IFRS Foundation.

    <p>True</p> Signup and view all the answers

    In a partnership, the partners' individual exposure to debt is limited.

    <p>False</p> Signup and view all the answers

    What is the primary purpose of a Statement of Profit or Loss?

    <p>To record income generated and expenditure incurred over a given period</p> Signup and view all the answers

    What is the purpose of the IFRS Foundation?

    <p>It is the organization that issues the International Financial Reporting Standards.</p> Signup and view all the answers

    A ______________ is a record of the amount of cash generated and used by a company in a given period.

    <p>Cash Flow Statement</p> Signup and view all the answers

    The International Financial Reporting Standards are issued by the _______________________.

    <p>International Accounting Standards Board</p> Signup and view all the answers

    Which of the following statements is true about directors of companies?

    <p>They have a duty of care to show reasonable competence in their management of the affairs of a company.</p> Signup and view all the answers

    Match the following organizations with their descriptions:

    <p>IASB = Issues the International Financial Reporting Standards BPP Learning Media = Grateful for permission to reproduce extracts from the International Financial Reporting Standards IFRS Foundation = Holds the Trade Marks of the IFRS Foundation logo and others</p> Signup and view all the answers

    What is the address of the International Accounting Standards Board?

    <p>30 Cannon Street, London, EC4M 6XH, United Kingdom</p> Signup and view all the answers

    Financial statements for a partnership must be produced and made public by law.

    <p>False</p> Signup and view all the answers

    Match the following financial statements with their primary purpose:

    <p>Balance Sheet = Provides a snapshot of the company's financial position at a specific point in time. Statement of Profit or Loss = Provides a summary of the company's revenues and expenses over a specific period of time. Cash Flow Statement = Provides information about the company's inflows and outflows of cash. Ledger = A list of ledger balances shown in debit and credit columns.</p> Signup and view all the answers

    BPP Learning Media is the organization that issues the International Financial Reporting Standards.

    <p>False</p> Signup and view all the answers

    What is the main characteristic of a partnership?

    <p>A partnership is not a separate legal entity from the partners themselves.</p> Signup and view all the answers

    What is the email address of the International Financial Reporting Standards?

    <p><a href="mailto:[email protected]">[email protected]</a></p> Signup and view all the answers

    What is the role of the ACCA examining team in reviewing the revision materials?

    <p>To ensure the material properly covers the syllabus and study guide outcomes in the appropriate breadth and depth</p> Signup and view all the answers

    The ACCA examining team reviews the revision materials to ensure they cover the entire syllabus.

    <p>False</p> Signup and view all the answers

    What is the purpose of the question index in the revision materials?

    <p>To help plan revision</p> Signup and view all the answers

    BPP Learning Media is an ACCA _______________________ Content Provider.

    <p>Approved</p> Signup and view all the answers

    Match the following features of the revision materials with their descriptions:

    <p>Full question index = Helps plan revision Two mock exams = Provides practice at coping with the pressures of the exam day ACCA examining team's review = Ensures the material covers the syllabus and study guide outcomes in the appropriate breadth and depth</p> Signup and view all the answers

    The revision materials are reviewed by the ACCA examining team to ensure they are error-free.

    <p>False</p> Signup and view all the answers

    What is recommended to practice coping with the pressures of the exam day?

    <p>Attempting two mock exams</p> Signup and view all the answers

    What is the purpose of the ACCA Approved Content Provider?

    <p>Provides ACCA-approved support for revision</p> Signup and view all the answers

    Study Notes

    International Financial Reporting Standards (IFRS)

    • IFRS Foundation publishes International Financial Reporting Standards, including International Accounting Standards, SIC, and IFRIC Interpretations.
    • The Standards and accompanying documents are issued by the International Accounting Standards Board (IASB).
    • No part of the publication can be translated, reprinted, reproduced, or utilized in any form without prior permission in writing from the IFRS Foundation.
    • The IFRS Foundation logo, IASB logo, and other trade marks are owned by the IFRS Foundation.

    BPP Learning Media

    • BPP Learning Media is an ACCA Approved Content Provider.
    • The ACCA examining team reviews BPP Learning Media materials to ensure they cover the syllabus and study guide outcomes.
    • The review does not guarantee that every eventuality, combination, or application of examinable topics is addressed.

    Financial Accounting

    • A list of ledger balances shown in debit and credit columns is not a correct description of the Statement of Profit or Loss.
    • The Statement of Profit or Loss is a record of income generated and expenditure incurred over a given period.
    • Partnerships are not separate legal entities from the partners themselves.
    • Directors of companies have a duty of care to show reasonable competence in their management of the affairs of a company.

    Qualitative Characteristics of Financial Information

    • The IASB's Conceptual Framework provides the basis for its IFRSs.
    • The main underlying assumption is going concern.
    • The Conceptual Framework states that qualitative characteristics are the attributes that make the information provided in financial statements useful to users.
    • The four enhancing qualitative characteristics are understandability, verifiability, timeliness, and comparability.
    • Other important qualitative characteristics and concepts include materiality, prudence, consistency, and the business entity concept.
    • A trade-off between qualitative characteristics is often necessary to achieve an appropriate balance to meet the objective of financial statements.

    Accounting Concepts

    • The business entity concept should be considered if the owner of a business takes goods from inventory for their own personal use.
    • The accruals concept governs the recognition of sales revenue when goods and services have been supplied and costs are incurred when goods and services have been received.

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    BPP F3 Exam Kit 2020 - Financial Accounting PDF

    Description

    Learn about International Financial Reporting Standards, including International Accounting Standards, SIC, and IFRIC Interpretations, and their publication by the IASB.

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