IFRS Regulatory Framework and Compliance 2

Question 1

Which body is responsible for setting IFRS Accounting Standards?

Accepted Answer

International Accounting Standards Board (IASB)

Answer

The IASB, operating under the IFRS Foundation, is solely responsible for developing and issuing IFRS Accounting Standards.

Question 2

What is the role of the IFRS Interpretations Committee?

Accepted Answer

To provide guidance on applying existing IFRS where divergent interpretations have arisen

Answer

The IFRS Interpretations Committee issues IFRIC Interpretations to address divergent application of existing IFRS requirements.

Question 3

Under the IFRS Foundation's governance structure, which body provides oversight of the IASB?

Accepted Answer

The IFRS Foundation Trustees

Answer

The IFRS Foundation Trustees appoint IASB members, oversee its work, and ensure the independence of the standard-setting process.

Question 4

A US private company voluntarily adopts IFRS. Which regulatory body's rules would primarily govern this decision?

Accepted Answer

The SEC

Answer

The SEC governs financial reporting requirements for US entities; public companies must use US GAAP, and private companies follow AICPA guidance on permissible frameworks.

Question 5

Which of the following correctly describes 'endorsement' of IFRS by a jurisdiction?

Accepted Answer

The jurisdiction reviews and formally adopts IFRS into its local legal framework, sometimes with modifications

Answer

Endorsement means a jurisdiction formally incorporates IFRS into its legal or regulatory system, often after a review that may result in carve-outs or modifications.

(IFRS) International Financial Reporting Standards Practice Test

(IFRS) International Financial Reporting Standards Practice Test

IFRS Regulatory Framework and Compliance 2